createwallet "disableprivatekeys"

[x3m]

The purpose of this feature as explained here: https://github.com/bitcoin/bitcoin/pull/9662 should be to ensure no mix between hot and cold keys but honestly I don't understand the use case.
What I've used instead, is the watch-only deterministic wallet created using a Master Public Key as explained here: https://bitcoinelectrum.com/creating-a-watch-only-wallet/.

Can anyone explain how to use createwallet "disableprivatekeys" together with fundrawtransaction?

[achow101]

The description in the PR isn't saying that disableprivatekeys wallets should be used with fundrawtransaction, but rather that they can be because fundrawtransaction allows setting a custom change address.

[x3m]

The description in the PR isn't saying that disableprivatekeys wallets should be used with fundrawtransaction, but rather that they can be because fundrawtransaction allows setting a custom change address.

Could you please make an example on how to manage creating transactions on a cold wallet and broadcasting through a hot wallet created with disableprivatekeys set?

[achow101]

A workflow using Hardware wallets is described here: https://github.com/bitcoin-core/HWI/blob/master/docs/bitcoin-core-usage.md. Note that this uses another feature that allows for pubkeys to be imported into the keypool of wallets with private keys disabled.

[HCP]

A workflow using Hardware wallets is described here: https://github.com/bitcoin-core/HWI/blob/master/docs/bitcoin-core-usage.md.

@x3m, I can confirm that this works... I've just tested this workflow using Bitcoin Core (TestNet) 0.20.0 and a Ledger Nano S. I installed the "HWI" Python module (and libusb) and was able to successfully create a "watching only" wallet within Bitcoin Core. I funded it with 0.1 tBTC and was then able to create the PSBT, finalise it and send it using HWI, my Ledger Nano S and bitcoin-cli.

I did get an "Unverified Inputs" warning on the Ledger device when signing the transaction, but I was able to "ignore" that error and continue.

@achow101, is that warning possibly due to the fact that the transaction that created the UTXO I was spending only had 1 confirmation when I was attempting to sign the transaction?

[achow101]

I did get an "Unverified Inputs" warning on the Ledger device when signing the transaction, but I was able to "ignore" that error and continue.

@achow101, is that warning possibly due to the fact that the transaction that created the UTXO I was spending only had 1 confirmation when I was attempting to sign the transaction?

No, that's because of a recent update to the Ledger Bitcoin App that requires software to provide more UTXO data. There's a PR to fix that (along with a bunch of other related issues in other devices).