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The Disguising of 3 out of 5 keys as 2 out of 3 keys and implications for bitcoin security standards

The Disguising of 3 out of 5 keys as 2 out of 3 keys and implications for bitcoin security standards

Abstract: For those who are familiar in the technique and art of bitcoin encryption, we are aware of the 2 out of 3 private key system used by custodial wallet providers. There also exists a 3 out 5 private key solution for custodial wallets. This paper submits with minimal technical detail that a 3 out of 5 private key solution can be disguised as a 2 out of 3 custodial key solution, permitting a user to believe his bitcoins are protected through a 2 out of 3 custodial key system, when really, one of the private keys in the presented 2 out of 3 system can be used to extract two other keys that are used in a 3 of 5 private key used to sign transactions, and submits a solution to this problem of authenticating the validity of a 2 out of 3 key system, proving it is not a trojan horse for a 3 out of 5 valid signing authority.

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