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Question: [10-Sep-14] Should sigsafe turn into a real product?
No, it was a good proof-of-concept but NFC is not ubiquitous enough to create a market.
Yes, if you can get a commitment for integration with a popular Android wallet.
Yes, it's already a useable product on its own (assuming you publish a communication protocol and a command-line interface program).  
None of the above.

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Author Topic: Sigsafe: A NFC key tag for signing bitcoin transactions  (Read 23164 times)
Peter R (OP)
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June 11, 2014, 04:11:52 PM
Last edit: June 11, 2014, 05:53:11 PM by Peter R
 #41

I apologize.  I think I misunderstood your first post.

I think what you proposed here is exactly what the sigsafe is designed to do.  It receives an unsigned transaction from any device, signs it provided doing so doesn't violate any of its signing rules, and returns the signed transaction.  Basically, it's like signrawtransaction subject to additional (user-defined) constraints applied on a privatekey-by-privatekey basis.

Does that make sense?

Your previous descriptions suggested something different, e.g. : "implementing a cold/hot wallet system where the cold wallet can only send coins to the hot wallet" "this image shows the sigsafe about to sign a transaction (over NFC) that presumably sends 1.66 BTC to the Android hot wallet"

This tells me the Sigsafe is receiving a request to generate a signed tx for an amount to an address, sending it to the Android device, broadcast from the Android device, and then spent from the wallet on the Android device once it confirms. Whereas it is perhaps better described as a separation of two aspects of the wallet; the address chains stored on the broadcast device and then the spending keys (as well as the address chains, really) stored on the Sigsafe. So no actual transfer between a wallet on the Sigsafe and a wallet on the broadcast device takes place.


Yes, by configuring the appropriate signing rules this is already possible.  What you want to do is configure a key (or keychain) in the sigsafe that does not lock the spend address, but does require authentication from the Android wallet.  This way the Android wallet can construct a raw transaction that spends from this key (or keychain) to, e.g., your friend, pass the transaction to the sigfsafe for signing, and then broadcast the signed transaction to the network.  

At an abstract level, the sigsafe is a device that stores keys (or keychains) and sign transaction request provided none of the signing rules set up for that particular key (or keychain) are violated.  

For example, a single sigsafe device could be configured with

  - a low-security key (or keychain) that signs any transaction (perhaps with a per-transaction spend limit of 0.05 BTC and a daily spend-limit of 0.1 BTC).
  - a medium-security key (or keychain) that signs any transaction provided the interface device making the request successfully authenticates itself
  - a high-secuity key (or keychain) the only signs transactions that spend funds to a white-listed address (such as a pre-defined hot wallet).  

The two example application I gave earlier where just things that could be created by configuring signing rules in certain ways.  I was thinking that non-technical users could just buy sigsafes already setup specifically for their desired use case (e.g., hot/cold wallet system, or daily-spending tag) so that the sigsafes would work securely right out of the box and without risk of the user "forgetting to setup the signing rules."  So that's why I gave the two specific examples, but a lot more is actually already possible.  Here are the sigsafe signing rules so far (from sigsafe.pdf).  Each of these rules can be applied separately to each key (or keychain) stored in the device:

Locking the spend address.  Requests are only signed if the transaction moves funds to a white-listed address, such as the hot address of a cold/hot wallet system. If a thief gained physical access to the tag, he would only be able to move funds into the owner’s hot wallet. It is unlikely that a thief in possession of the tag would simultaneously be in  possession of the hot wallet’s private key.

Setting a transaction-based spend limit.  Transaction requests seeking authorization for amounts greater than a user-defined spending limit will not be signed. To prevent a malicious host device from draining the balance with several small transactions in quick succession, the tag will run its clock for a short amount of time after producing a signature, ignoring new signature requests. Since the energy harvested from the NFC field during signing is sufficient to run the microcontroller for several seconds after the field is disabled, the backup battery is not required to implement this signing rule.

Setting a time-based spend limit.  When this signing rule is enabled, the tag runs its clock as required when in sleep mode, enabling it to tabulate the amount of bitcoins spent each hour, day, or week and disallow transactions if certain limits are exceeded. Use of time-based signing rules may significantly decrease battery life.

Implementing password protection.  The user can specify a password for the tag. The host must include this password when making a request or the transaction will not be signed. For example, a phone-based bitcoin wallet would prompt the user for their  password and append this to the request being made. To deter brute-forcing of simple  passwords (e.g., 4-digits), the required delay between signing requests increases with the number of failed password attempts.

Requiring cryptographic authentication.  The host device must sign a random nonce generated by the tag. The tag checks the signature from the host, and, unless the signature verifies to a trusted address, the transaction request will not be signed. For example, the tag could trust certain brands of PoS terminals deployed throughout brick-and-mortar stores.

Producing only bitcoin-signed messages.  The tag will only produce bitcoin-signed messages for private keys that have this option set.

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June 11, 2014, 08:33:33 PM
Last edit: June 13, 2014, 11:33:28 PM by Peter R
 #42

Sigsafe support for BIP32 hierarchal deterministic keychains

I think I worked out a fairly simple way for a Bitcoin Signing Class device like the sigsafe to support BIP32 address chains.  It just requires adding one additional optional argument to the "SignRawTransaction" APDU command.  First, let's take a look at BIP32.

Why would BIP32 be useful for sigsafe?

The BIP32 spec was originally published (2012-02-11) by Pieter Wuille.  It describes a method to create hierarchal deterministic (HD) keychains and wallets that "can be shared partially or entirely with different systems, each with or without the ability to spend coins."

Here's an example of how an HD keychain would be useful for a Bitcoin Signing Class device like the sigsafe:

Imagine that a bitcoin user at a brick-and-mortar coffee shop wants to pay for a latte with his sigsafe but doesn't want to use the same bitcoin address over and over (for privacy reasons).  When the point-of-sales (PoS) terminal issues the "GetInfo" APDU command, instead of returning a single bitcoin "spend address," the sigsafe could return an "public keychain" for spending.  What is amazing about HD wallets is that with knowledge of the public keychain, the PoS terminal can figure out what bitcoin addresses the sigsafe can spend from (i.e., what addresses the sigsafe can calculate the private key for) without any sort of security breach.  The PoS terminal would scan for unspent outputs across the keychain domain1 and construct a transaction that spends the amount owing for the coffee to the merchant's address, returning change to a different bitcoin address in the same keychain.  The PoS terminal would send this raw transaction to the sigsafe using "SignRawTransaction"--with one additional detail that I'll get to later.  Provided none of the signing rules are violated, the sigsafe would produce the required ECDSA signatures, return the signed transaction to the PoS terminal, and the PoS terminal would broadcast to TX to the network to complete the transaction.  

What does a BIP32 keychain look like?

A bitcoin keypair consists of a private key, d, and a public key, Q.  The public key can be determined from the private key using the equation

     Q = d G

where G is the (x,y)-coordinates of a special point on the secp256k1 elliptic curve known as the "base point."  Also note that elliptic curve multiplication is of course implied rather than regular vector multiplication.  To sign a bitcoin transaction, knowledge of d is required, but to verify the signature only knowledge of Q is required.  There is no feasible way to calculate d from Q.

In BIP32, instead of ECDSA public and private keys, we need to think in terms of public and private extended keys or "keychains".  (Note that I am now deviating from Pieter Wuille's notation, in an effort to be consistent with the NSA's FIPS 186-3, and IMO also abstract the notation in a useful way.)

   public keychain :  Q = (Qparent, c)

   private keychain : d = (dparent, c)

The parameter c is called the "chain code," is constant for a given keychain, and is 256-bits long.  I like to think of Q and d as vectors such that the ith element is the ith child key for that chain.  So Q4 means the the child ECDSA public key at index four, and d7 means the child ECDSA private key at index seven.  The BIP32 spec describes how to calculate Qi as a function of (Qparent, c, i) and how to calculate di as a function of (dparent, c, i).

The magic of BIP32 is that (for some reason that I don't yet understand Smiley )

   Qi = di G.

This is very significant because it means that an external device can calculate the public keys for a given keychain without gaining knowledge of the corresponding private keys!

Sigsafe support

A given keychain has 2^32 child keys and neither the sigsafe nor a point-of-sales terminal have a reliable way of knowing at which index unspent outputs might be lying.  It would not be practical for a PoS terminal to scan 2^32 bitcoin addresses to look for spare coins!  

My idea (and I'm not completely happy with it) is to use signing rules to limit the range of the child index between 0 and N-1, where N can be no smaller than 2^8 = 256  (but could be specified as greater than 256 by the GetInfo packet).  The sigsafe would only sign transaction that return change to indices less than N but could still spend outputs at higher indexes.  The interface device would know to look for unspent outputs between 0 and 255, but could optionally look for inputs outside of this range.  It would just need to make sure that when it contructs the raw transaction, that all outputs are returned to an index within the domain.  

The next issue, is that the sigsafe doesn't have a lot of computational power.  If it was given a raw transaction that spends outputs on its keychain, it would still take it a long time (even with N=255) to figure out what private keys it needs to produce a valid signature.  For this reason, I think the interface device should use an optional argument with "SignRawTransaction" to specify the keychain and index that any inputs or outputs in the raw transaction are controlled by or sent to.  This way, the sigsafe can create the needed ECDSA keypairs at run-time, sign the transaction if authorized, and then forget that it ever happened.  


TL/DR: I think we just need to add a P2=FF option to the SignRawTransaction APDU to specify the keychains and indices used by the TX:

Code:
SignRawTransaction APDU:    

CLA          = B0
INS          = 80
P1           = 00 : standard BSC interpretation
             = xx : proprietary interpretation (P1=CC for sigsafe-only interpretations)
P2           = 00 : raw transaction in command data field expressed in binary (arg1)
             = 01 : optional parent transaction in command data field expressed in binary (arg2)
             = 02 : optional private key in command data field expressed in binary (arg3)
             = 03 : optional sighash specifier (arg4)

             = FF : optional keychain and index for outputs controlled by or sent to a BIP32 keychain (for P1=CC)

Lc           = encodes number of bytes in "command data field"  
command data
Le           = encodes max number of response bytes allowed

response data
SW1
SW2

    
1A reduced domain compared to the 2^32 possible child keys.

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June 16, 2014, 06:51:23 PM
 #43

Here's a recent story about this project on Coindesk: http://www.coindesk.com/sigsafe-key-tag-brings-bitcoin-payments-nfc-devices/

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June 16, 2014, 08:08:03 PM
 #44

I guess the big question now is, when will the early devices be seen? Prototypes, CE and industry show appearances and/or demos? There are hints about the future in this post:

When the sigsafe tags are first released, we will charge what the market can bear in order to recoup tooling and engineering costs as quickly as possible.  

If there is real demand for ECDSA signing tags, I think these tags could become very inexpensive in large volumes (like "give-away as promotional material" cheap), especially if the backup battery and sintered ferrite film can be eliminated (at the cost of losing time-dependent signing rules).  This kind of cost reduction would be several years away and require several orders of magnitude growth in the bitcoin user base.

There is more of a chicken and egg situation with these devices than with the technological angle that other hardware wallet designers have come up with, but I am reminded of what French supermarket Monoprix implied when they announced web-only bitcoin support later this year (which was that the technology for in-person bitcoin payments wasn't as usable as the online solutions). Sigsafe is a candidate to bridge that gap, as it seems that all a retailer needs is a PoS reader and till that supports the device, and a software upgrade both at the outlet level and for their finance department.

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June 17, 2014, 02:28:09 AM
 #45

Looks cool~ Grin

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June 17, 2014, 04:15:48 AM
 #46

There is more of a chicken and egg situation with these devices than with the technological angle that other hardware wallet designers have come up with, but I am reminded of what French supermarket Monoprix implied when they announced web-only bitcoin support later this year (which was that the technology for in-person bitcoin payments wasn't as usable as the online solutions). Sigsafe is a candidate to bridge that gap, as it seems that all a retailer needs is a PoS reader and till that supports the device, and a software upgrade both at the outlet level and for their finance department.

I think the "chicken and egg" problem will apply most acutely to integration at brick-and-mortar PoS terminals.

But bitcoin has taught me the value of a network.  Things like Gavin's Payment Protocol (BIP70) and Lawrence Nahum's extension for instant confirmations via green-addresses are important in reinforcing this network effect.  If a spec is simple, clear, flexible and robust, and if community members feel they've had some input, then people will just begin to adopt it.  It's the easiest way to move forward.  

For this reason, I'm trying to think of Sigsafe as just one realization of a larger class of devices that could share a common communication interface and function, as well as be compatible with equipment already widely deployed.    

From my research, I've learned that Android phones with NFC, contactless PoS terminals, and the majority of new RFID readers adhere to ISO/IEC 14443.  This means they share a common radio frequency, power and signal interface (14443-2), initialization and anti-collision schemes (14443-3) and a common transmission protocol (14443-4).  So bitcoin signing tags and smartcards that adhere up to ISO 14443-4 will automatically be hardware compatible.  

Communication with both contact and contactless smartcards is consistent up to the application layer using the application protocol data unit (APDU) specification from ISO/IEC 7816.  What this means is that bitcoin signing devices with firmware the supports APDU commands will be largely software compatible up to the application layer.  

I think if we can achieve this and make everything clear and easy, first we will see bitcoin wallets begin to interface with devices like sigsafe.  And then if another company can build a different version of a bitcoin signing tag knowing how to make their device compatible with existing wallets, then they will be incentivized to do so, especially if the profit margins are good.  Next thing you know and perhaps a lot of people will have these devices from 3 different manufacturers that all share a compatible interface.  

Then an innovator will hack an Android phone or tablet to accept "tap-and-pay" NFC payments at his store.  This will begin to catch on--but people will complain about security: "I'm not touching my bitcoin tag to that hack!"  When investors with deeper pockets begin to notice the opportunity, they'll be pleasantly surprised to learn that it just requires some software updates and an entire line-up of PoS terminal can suddenly accept bitcoin.  In fact, the existing spec already allows for two-way authentication to quell the fears of stollen coins.  

Or at least that's one way it could happen Cheesy  Perhaps people will decided that they don't like the idea, or perhaps some big company will lock it down in a proprietary and closed format.  Time will tell.  This project started out as an excuse for me to learn about the protocol, so whatever happens I've already learned a lot.  


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June 17, 2014, 08:30:00 AM
 #47

You really should be talking to asciilifeform and the others on irc http://bitcoin-assets.com/

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June 18, 2014, 12:40:34 AM
 #48

it is a really interesting concept
do you have a plan to make it?
is there any approx date?
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June 18, 2014, 01:17:28 AM
Last edit: September 14, 2014, 05:54:09 PM by Peter R
 #49

it is a really interesting concept
do you have a plan to make it?
is there any approx date?

Yes, this product is in active development.  We hope to have alpha models produced towards the end of the summer.  These units will be made available to partner developers, as well as used for FIPS 140-2 cryptographic module compliance testing in the early fall.  We intend to be in open beta (selling to the bitcoin community) by early 2015, assuming there's demand to move forward. 

That being said, I have little control over support from interface devices such as Bitcoin wallets and point-of-sales terminals.  I expect that some wallet support will be ready, but I think meaningful support by point-of-sales equipment is still a ways off (and even that statement is assuming the idea of rule-based bitcoin signing tags for brick-and-mortar purchases is accepted).  I would be keen to partner with someone in the point-of-sales equipment business interested in integrating bitcoin payments (no hardware changes required!).  

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June 24, 2014, 08:49:54 PM
 #50

on a related note, not totally relevant, I saw this. ifind cool scam key locator.

looks too good to be true it is too good to be true.

the energy source powering the referenced device above is pure fantasy apparently.

http://mobile.slashdot.org/story/14/06/23/2357200/500k-energy-harvesting-kickstarter-scam-unfolding-right-now

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June 24, 2014, 09:34:22 PM
 #51

looks too good to be true it is too good to be true.

the energy source powering the referenced device above is pure fantasy apparently.

http://mobile.slashdot.org/story/14/06/23/2357200/500k-energy-harvesting-kickstarter-scam-unfolding-right-now

Damn limitations of the physical universe.  It does point out what makes a "good" scam good.  Take an idea that is loosely based in reality that is only invalid due to scale.  Everyone knows RF signals have "some" energy so the idea of a widget powered by RF signals is more plausible than one powered by a microscopic fusion core.

Still best response to the thread
Quote
I'm in complete agreement here. We desperately need some way to tell legitimate Kickstarter campaigns from frauds. For that matter, the entire internet is full of scams and con-men waiting to take your money. That's why my team has developed iScam, the revolutionary new fraud-protection device.

Inside every iScam is a tiny induction coil that is powered by negative energy. When negative energy released by a scam such as this one activates the device, it generates a current which in turn activates a blinking LED, with the frequency of the blinking being proportional to the negative energy field. Simply aim the device at your computer screen, or hold it up to the phone when you get that too-good-to-be-true offer, or even point it at your lover... if there's any deception in the area, iScam will be activated and you'll be alerted!

Pledge just $15 and we'll send you one device. For $25 we'll send you two. For $100, we'll send you an improved prototype with even more sensitive scam-detection algorithms. And for the especially gullible-those of you who have lost thousands or tens of thousands of dollars to scammers before- you need the top-level security provided by iScam Pro, which has a more powerful induction circuit, both increasing the range of the device and allowing it to detect even the tiniest fib! Pledge just $999 and we'll send you an iScam Pro. With our patented technology, you'll be safer than ever. And best of all, it's all environmentally friendly and fair-trade, with 10% of all proceeds going to benefit orphaned pandas.
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June 25, 2014, 03:35:11 AM
 #52

And here I was thinking wow this power tech is quit advanced, thinking they had a demonstrable functioning prototype.
my bad I should have looked into it a little more and always remember stay critical.

@D&T I lol,ed at the $999 option it's worth the investment if you've fallen victim to a scam before.

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July 02, 2014, 05:16:50 PM
 #53

an NFC kickstarter project with a little more Credibility some what related.

https://www.kickstarter.com/projects/donatien-garnier/micronfcboard-easy-nfc-for-the-internet-of-things

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July 02, 2014, 09:40:26 PM
 #54

this looks really good! Is there an ETA for this?  Smiley














 

 

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July 03, 2014, 12:19:32 AM
 #55

This looks like a very good product.
The potential are unlimited.
This system has the potential to replace the existing card system.

and with news that MasterCard recently filed for a patent related for bitcoin incorporation into its existing payment system, this product will be something to lookout for.

also, as adrian-x mentioned, this will really help people who have fallen prey to scams.

I would really love to take a try at this device, and maybe even try the NFC HTML5 api to push the potential of this gadget.

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July 03, 2014, 07:30:32 AM
 #56

also, as adrian-x mentioned, this will really help people who have fallen prey to scams. .

The last reference I made to kickstarter in this thread turned out to be a scam, this one looks more credible, and offers a back end solution.

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July 03, 2014, 10:59:00 PM
 #57

I would really love to take a try at this device, and maybe even try the NFC HTML5 api to push the potential of this gadget.

Unfortunately, there is no mainstream browser support for webNFC yet.  It is in "draft" stage at the World Wide Web Consortium.  Mozilla seems to have made some progress for Firefox OS (mobile only), and it appears possible to interact with an NFC reader with a Chrome app.  Of course, you can interact directly with an NFC device using a custom program or Android app too.   

Here's a brief update: http://www.programmableweb.com/news/w3c-launches-draft-nfc-api/interview/2014/02/06

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July 09, 2014, 12:17:57 AM
 #58

also, as adrian-x mentioned, this will really help people who have fallen prey to scams. .

The last reference I made to kickstarter in this thread turned out to be a scam, this one looks more credible, and offers a back end solution.

Its a scary world out there. considering the number of scams out there, people would at times suspect the legitimacy of a completely genuine project. But lets hope this project indeed does what it says it will. and i will most certainly be interested in getting my hands on its tech. Smiley

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July 09, 2014, 12:24:00 AM
 #59

also, as adrian-x mentioned, this will really help people who have fallen prey to scams. .

The last reference I made to kickstarter in this thread turned out to be a scam, this one looks more credible, and offers a back end solution.

Its a scary world out there. considering the number of scams out there, people would at times suspect the legitimacy of a completely genuine project. But lets hope this project indeed does what it says it will. and i will most certainly be interested in getting my hands on its tech. Smiley

So hard to pick a good coins / coin services sometimes. The people want to offer you everything. But soon a coin will come that does, and everyone will be scared of it!

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July 09, 2014, 12:31:32 AM
 #60

also, as adrian-x mentioned, this will really help people who have fallen prey to scams. .

The last reference I made to kickstarter in this thread turned out to be a scam, this one looks more credible, and offers a back end solution.

Its a scary world out there. considering the number of scams out there, people would at times suspect the legitimacy of a completely genuine project. But lets hope this project indeed does what it says it will. and i will most certainly be interested in getting my hands on its tech. Smiley

So hard to pick a good coins / coin services sometimes. The people want to offer you everything. But soon a coin will come that does, and everyone will be scared of it!

Yes, then you will hear phrases like, "too good to be true" and write-off the whole thing.

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