Does Cold Code keep my random wordlist Information?
No. Once the Random wordlist is created with our offline computer, the information is deleted permanently. You will be the only person that knows your random wordlist.
Immediately after creation, each random wordlist goes into its own black security sleeve and then each matching random wordlist set is sealed in a tamper proof bag. This means Cold Code has no knowledge of which random wordlists are sent where.
Do I have to trust the cold code company with my crypto private keys?
No. The concept of cold code was created with minimizing trust as a primary factor. The random wordlist provided by cold code are created by an offline computer and are securely for maximum protection. The beauty of the cold code system is that we take steps to maximize security, but at the end of the day only you know/handle your own real wordlist and thus private keys.
That being said, you need to take care to securely handle your random wordlist plates and cold code. They each represent half of what someone would need to recover your wordlist.
What happens if I lose a stainless dummy list?
Because your cold code kit comes complete with two identical stainless lists, if you lose one you have an additional one that can recover your actual list. We recommend storing one in a secure place at home and the other in a bank security deposit box or a family member or friends location. Since your dummy list has 0 relationship to your actual wordlist you sacrifice very little security while decentralizing your recovery backup.
What happens if I lose my cold code?
When creating your cold code, we recommend adding it to at least three password protected digital locations. The most common three are an email to yourself, your cloud photo storage service and a Dropbox or equivalent data cloud storage. This way if you lose one, you have at least two backups. This also means that to recover your actual wordlist you need a password, an added security feature for physical backup unique to cold code.
How is cold code different from cryptosteel or similar products?
The cold code method of hardware wallet backup decentralizes your backup wordlist. Instead of having a single backup, you have several options for recovering your real wordlist. The cold code method also means that a thief cannot obtain your real wordlist by taking your physical backup as with a cryptosteel style backup. One more benefit is that you can store additional backups wordlists at zero cost. This makes storing your backup for a hardware wallet and maybe a mobile phone wallet easily done with one system.
How does Cold Code create my matching random wordlist?
Our offline computer is always password protected and never connected to any network. The computers network capabilities have been disabled. The laser engraver has no network connectivity capabilities neither.
Cold Code uses an offline computer with a proprietary random number generator. Once the random number is created and the plate is laser annealed, the information is deleted.
Our offline computer is kept behind lock and key and only accessible during production of random wordlists. The hard drives are also routinely physically destroyed and made so no information can be extracted from them.
Immedietly after creation, each random wordlist goes into its own black security sleeve and then each matching random wordlist set is sealed in a tamper proof bag.
How is cold code different from bitkee or similar products?
The cold code method is designed so that you don’t have to trust the company creating your physically stored wordlist card. Because you create your own cold code key, you are the only one who ever knows your real wordlist and thus your private keys. Remember, companies are comprised of people, and people are fallible. Even the most trusted companies can make mistakes and mishandle your keys if you allow them the opportunity.
Why do I add 2048 to negative numbers when creating my cold code?
There are 2048 numbers in the standardized BIP39 wordlist used by all major crypto wallets. By adding 2048 to negative cold code numbers, you maintain 2048 possibilities for creating any single cold code number.
This means that if someone obtains your cold code, they are 0% closer to guessing your real wordlist.
Why does my Random Wordlist only have numbers on it?
The numbers are a list in order from 1 to 24. The first number represents the list position. The second number ranges from 1-2048 and corresponds to BIP39 wordlist numbers which can be found here https://github.com/bitcoin/bips/blob/master/bip-0039/bip-0039-wordlists.md
By not using actual words from a particular wordlist language, the dummy wordlist becomes compatible with any BIP39 language you wish to use.