Keeping hot wallets on a home server

[unabridged]

All wallets get kept on a server at your home that handles keys & generates transactions and communicates with your online server, ssh connection between home server and online server. The only bandwidth used is online server sending requests for new addresses for deposits and withdrawal requests, and home server sending back addresses and signed transactions for online server to publish (or denial of request). An average home connection should be able to handle this even for a massive amount of transactions, lets say you have a very low 100kb/s total bandwidth and each transaction is 1KB total both ways you could still handle 750 withdrawals a minute at peak without queuing.

Along with other checks, home server could also keep its own ledger of customer accounts to detect if online server gets compromised and fraudulent withdrawal requests are being sent. The only downside is possible extended downtime (just delayed withdrawals, site would still be operational) if your power/connection goes out, but I'm sure you would still be at like 99.9%

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[dayfall]

If this could be done with an old android phone or something like a raspberry pi, then I would be very interested in having one.  For personal use, I would want it to accept a Yubikey type of password.

[Jan]

Check out BitcoinSpinner.

[mb300sd]

Downtime shouldn't be an issue. A good UPS costs around $200, a redundant internet connection would be around $20/month for a cheap 1mbps line, and in the event that both connections go down, you can always tether a phone. I have this in my apartment along with a server rack, and I'm just a poor college student.

[tatsuchan]

I'd like to see some tutorials or working examples on how to run a website with a bitcoin wallet that I'd be managing the actual wallets from home, and keeping the server(website) at a remote site.