Bitcoin Forum

I really believe this will be very popular! It will be a very safe way for people to use Bitcoin even if their computer is full of viruses and they aren't sure how to really use computers!!

Why?
-less worries about viruses or malware
-very safe
-simple without knowing how to use linux or safely encrypt wallet - no command line!
-unencrypted wallet never touches hard drive
-blockchain doesn't have to be re-downloaded every time the user boots into the live CD
-would only be about a 30 MB download that the user burns onto CD


Here's what the user would see:

-Enter CD and reboot computer
-Loads automatically into Tiny Core Linux and user is greeted with a message:
"Now insert USB stick used previously with this software or insert a new USB stick with at least xxx MB free space. If this is the first time running Bitcoin here it may take some time to download the entire blockchain."
-User inserts USB stick
-Message says "USB stick found. Do not remove until advised it is safe to do so!"
-After USB stick is in it prompts for password to open wallet if needed. (If encrypted wallet found)
-A prompt is shown asking if BitLive should try connecting to the internet. Only connect to internet if the answer is yes.
-Bitcoin is launched
-The only icons on the screen is "Save Wallet and Shutdown" and "Addresses"
-When "Addresses" is clicked it prompts the user that "If you don't want to manually write down Bitcoin addresses, just create a text file called "addresses.txt" in the BitLive folder on the USB stick and it will be opened here. Otherwise, the file will be created now and you can edit it at any time in other operating systems just by editing the file in a text editor. This text file is not encrypted." Opens file with a text editor. Any type of notes or addresses can be put in it. This allows user to copy and paste addresses if wanted.
-When user clicks "save wallet and shutdown", Bitcoin is closed if needed and the user is prompted for a password they would like to use to encrypt their wallet.  Advice is given on how to pick a good password. (If password was needed to open a wallet it doesn't ask for it again but asks if they want to change it. Also mentions that old copies of the wallet with the old password can still be on the USB stick.)
-Once password is entered twice it informs the user to make backups of the USB stick and copy it's contents to multiple safe locations. Also tells the user they can remove USB stick. User clicks OK and system shuts down.

Technical:
-open source with all alterations to Tiny Core Linux documented so anyone can create the same product manually if wanted
-Tiny Core Linux allows for a 20 MB + Bitcoin + Gtk (needed for GUI) + GPG = about a 30 MB total ISO image.
-only connects to internet if the user says it's ok
-When it loads it prompts the user with the message and a script is watching for a USB stick to be inserted. It's automatically mounted.
-If it doesn't have a "BitLive" folder one is created. If it does, the latest encrypted wallet is found.
-GPG is used for all the encrypted -symmetric encryption
-Bitcoin is loaded with the "-datadir" being the USB stick folder. A symmlink is made pointing to wallet.dat on the home folder. The unencrypted wallet goes into the home folder. This will allow the blockchain to be read off of the USB stick AND the wallet.dat will never exist on the USB stick in an unencrypted form!
-the shutdown button will make sure bitcoin is closed and re-encrypt the wallet.dat at the home folder and put it on USB stick. Perhaps naming it wallet03282011.dat.gpg will allow the date to be part of the filename so the user can easily tell the age the encrypted copy was made.
-to create backups all the user has to do is back up the "BitLive" folder. The wallet files are all encrypted so it's safe to copy the whole folder

It would be super easy to use! AND safe!

I don't know about others but I'd love having something simple like this. It would help people who aren't really computer literate use Bitcoin safely.

I guess BitVault LiveCD inspired you to write down this idea...

It is in my intention to create something similar in the near future.


http://www.kittybomber.com/BitVault

http://www.kittybomber.com/BitVault_dev

I would pledge up to 5 BTC for successful project.

but ...

Needs to have a terminal available/prominent.
Needs to be compatible with IronKey USB secured sticks.

... also not too sure about locking into a query/response dialog. Maybe a selectable "advanced/expert" mode that drops into terminal or some such?

LinuxCoin can do just about everything you say but not 30mb :D more like 730MB lol. Home folder can be encrypted in around 2 mins. This could be copied to several locations and can be configured to not connect apon startup very easily.

which distro did you use to get 730mb? I am using a Windows MiniXP LiveCD and got it to 350mb because the block-chain is preloaded inside it.

It's debian based but is very powerful and lots of features like PXE server etc.

http://forum.bitcoin.org/index.php?topic=7374.0

I have not had a chance to look at it yet. I thought most of it you had to do your self manually. Is there any GUI type app that walks you through setting up an encrypted folder on a USB stick?