[Bitcoin-development] Subject: Re: Proposal to address Bitcoin malware

2015-02-03 Thread Will
An idea for the bitcoin malware proposal below, the idea is at the bottom…

Using a desktop website and mobile device for 2/3 multisig in lieu of a 
hardware device (trezor) and desktop website (mytrezor) works, but the key is 
that the device used to input the two signatures cannot be in the same band.  
What you are protecting against are MITM attacks.  The issue is that if a 
single device or network is compromised by malware, or if a party is connecting 
to a counterparty through a channel with compromised security, inputing 2 
signatures through the same device/band defeats the purpose of 2/3 multisig.  
This is the same as how MITM defeats 2FA via mobile phone if the token is 
entered into the same website as the password - the token is simply passed 
through by the attacker to the secure session with the provider, allowing 
unfettered access or reuse of tokens for transactions other than those intended 
by the real user.

Companies have found clever ways around MITM attacks using SSL sniff and 
derivatives by embedding code in mobile apps that communicate not with the 
website authenticating the user, but with 3rd party company that authenticates 
the token and passes the authentication to the website through a different 
secure channel, making the MITM attack far much more difficult.  The trick here 
is that instead of one channel, we now have two channels that must be 
compromised.  Also, the second channel is between a security company and a 
(hopefully) professionally run financial services website.  There are other 
approaches to defeat MITM, such as fingerprinting pages to detect spoofs.  The 
former (secure 3rd party channel) is very secure but requires a trusted third 
party.  The latter (fingerprinting) is a crap shoot with very high false 
positive rates.  

Anyway, the exact same principles apply here to this conversation.  The second 
signature must be presented from a separate band to maintain a higher degree of 
security.  If one signature occurs via HTTP(s) from application 1, another 
should be SMS through a carrier network, etc via application 2.

The trick we need to look at is how to use the bitcoin network as a delivery 
mechanism to bypass the need for the trusted third party in the example above.  
Instead of the second factor routing through a 3rd party to the intended 
recipient, we have another option - one that doesn’t require core development 
either.

1) Sender  signs signature 1 via desktop  bitcoin network 2/3 P2SH
2) Mobile app also used by sender receives req. from bitcoin network to sign 
signature - not through the site in 1 (similar to the 2nd channel between the 
website and security company above)
3) Sender  signs signature 2 via mobile app (or any separate device operating 
on a different network - heck could be radio)  2/3 signatures, transaction 
authorized

Any wallet service provider can use this model, all they must do is develop two 
independent applications such a secure browser plugin and a website, or a 
mobile app and a website that use 2/3 multisig to authorize transactions.  No 
core development required - just better security design and execution by those 
developing wallets.  If the protocol could natively communicate via two 
separate networks, that might be something to consider, but really developers 
should already have all the tools they need, assuming they are competent.

If there was a way to perform 2/3 multisig without requiring a second band, 
performing the function safely by somehow knowing if the service is performed 
from a compromised device through some sort of on-blockchain anti-malware check 
by validating the signature of the signing application by comparing it to a 
signature recorded when the multisig address was funded,  that would be a 
really neat breakthrough.  Food for thought, but I can’t see how that could be 
executed in a way where signatures couldn’t be spoofed from a compromised 
device.  If someone cracks that problem, it’s a really big advance for 
information security.

On 02/02/2015 02:54 PM, Eric Voskuil wrote: 
 On Feb 2, 2015, at 11:53 AM, Mike Hearn wrote: 
 
 In sending the first-signed transaction to another for second 
 signature, how does the first signer authenticate to the second 
 without compromising the independence of the two factors? 
 
 Not sure what you mean. The idea is the second factor displays the 
 transaction and the user confirms it matches what they input to the 
 first factor. Ideally, using BIP70, but I don't know if BA actually 
 uses that currently. 
 
 It's the same model as the TREZOR, except with a desktop app instead 
 of myTREZOR and a phone instead of a dedicated hardware device. 
 
 Sorry for the slow reply, traveling. 
 
 My comments were made in reference to this proposal: 
 
 On Feb 2, 2015, at 10:40 AM, Brian Erdelyi brian.erde...@gmail.com 
 mailto:brian.erde...@gmail.com wrote: 
 
 Another concept... 
 
 It should be possible to use multisig wallets to protect against 
 

Re: [Bitcoin-development] [softfork proposal] Strict DER signatures

2015-02-03 Thread Alex Morcos
Could we see a PR that adds it to BIP 66?   Perhaps we'd all agree quickly
that its so simple we can just add it...
In either case it doesn't seem strictly necessary to me that it was
non-standard before it becomes a soft-fork...


On Tue, Feb 3, 2015 at 7:00 AM, Wladimir laa...@gmail.com wrote:

  One way to do that is to just - right now - add a patch to 0.10 to
  make those non-standard. This requires another validation flag, with a
  bunch of switching logic.
 
  The much simpler alternative is just adding this to BIP66's DERSIG
  right now, which is a one-line change that's obviously softforking. Is
  anyone opposed to doing so at this stage?

 Not opposed, but is kind of late for 0.10, I had hoped to tag rc4 today.

 Wladimir


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Re: [Bitcoin-development] [softfork proposal] Strict DER signatures

2015-02-03 Thread Wladimir
 One way to do that is to just - right now - add a patch to 0.10 to
 make those non-standard. This requires another validation flag, with a
 bunch of switching logic.

 The much simpler alternative is just adding this to BIP66's DERSIG
 right now, which is a one-line change that's obviously softforking. Is
 anyone opposed to doing so at this stage?

Not opposed, but is kind of late for 0.10, I had hoped to tag rc4 today.

Wladimir

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Re: [Bitcoin-development] [softfork proposal] Strict DER signatures

2015-02-03 Thread Pieter Wuille
On Tue, Feb 3, 2015 at 4:00 AM, Wladimir laa...@gmail.com wrote:
 One way to do that is to just - right now - add a patch to 0.10 to
 make those non-standard. This requires another validation flag, with a
 bunch of switching logic.

 The much simpler alternative is just adding this to BIP66's DERSIG
 right now, which is a one-line change that's obviously softforking. Is
 anyone opposed to doing so at this stage?

 Not opposed, but is kind of late for 0.10, I had hoped to tag rc4 today.

I understand it's late, which is also why I ask for opinions. It's
also not a priority, but if we release 0.10 without, it will first
need a cycle of making this non-standard, and then in a further
release doing a second softfork to enforce it.

It's a 2-line change; see #5743.

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Re: [Bitcoin-development] [softfork proposal] Strict DER signatures

2015-02-03 Thread Gavin Andresen
I think we should just do it, and include it with the other DERSIG changes
for 0.10.

On Tue, Feb 3, 2015 at 1:15 PM, Pieter Wuille pieter.wui...@gmail.com
wrote:


 I understand it's late, which is also why I ask for opinions. It's
 also not a priority, but if we release 0.10 without, it will first
 need a cycle of making this non-standard, and then in a further
 release doing a second softfork to enforce it.

 It's a 2-line change; see #5743.

 --
 Pieter


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Re: [Bitcoin-development] [softfork proposal] Strict DER signatures

2015-02-03 Thread Jeff Garzik
+1   I just ran an it-works test on #5743.  Not exhaustive, but I do agree
it should be included w/ other DERSIG changes.


On Tue, Feb 3, 2015 at 1:19 PM, Gavin Andresen gavinandre...@gmail.com
wrote:

 I think we should just do it, and include it with the other DERSIG changes
 for 0.10.

 On Tue, Feb 3, 2015 at 1:15 PM, Pieter Wuille pieter.wui...@gmail.com
 wrote:


 I understand it's late, which is also why I ask for opinions. It's
 also not a priority, but if we release 0.10 without, it will first
 need a cycle of making this non-standard, and then in a further
 release doing a second softfork to enforce it.

 It's a 2-line change; see #5743.

 --
 Pieter


 --
 --
 Gavin Andresen


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Re: [Bitcoin-development] Subject: Re: Proposal to address Bitcoin malware

2015-02-03 Thread Adam Weiss


 Using a desktop website and mobile device for 2/3 multisig in lieu of a
 hardware device (trezor) and desktop website (mytrezor) works, but the key
 is that the device used to input the two signatures cannot be in the same
 band.  What you are protecting against are MITM attacks.  The issue is that
 if a single device or network is compromised by malware, or if a party is
 connecting to a counterparty through a channel with compromised security,
 inputing 2 signatures through the same device/band defeats the purpose of
 2/3 multisig.


Maybe I'm not following the conversation very well, but if you have a small
hardware device that first displays a signed payment request (BIP70) and
then only will sign what is displayed, how can a MITM attacker do anything
other than deny service?  They'd have to get malware onto the signing
device, which is the vector that a simplified signing device is
specifically designed to mitigate.

TREZOR like devices with BIP70 support and third party cosigning services
are a solution I really like the sound of.  I suppose though that adding
BIP70 request signature validation and adding certificate revocation
support starts to balloon the scope of what is supposed to be a very simple
device though.

Regardless, I think a standard for passing partially signed transactions
around might make sense (maybe a future extension to BIP70), with attention
to both PC - small hardware devices and pushing stuff around on the
Internet.  It would be great if users had a choice of hardware signing
devices, local software and third-party cosigning services that would all
interoperate out of the box to enable easy multisig security, which in the
BTC world subsumes the goals of 2FA.

--adam
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Re: [Bitcoin-development] Subject: Re: Proposal to address Bitcoin malware

2015-02-03 Thread Will
Hi Adam - the conversation was pretty open regarding the factor / channel used 
to sign at the bottom.  No argument from me and I agree completely that 
hardened single purpose computers are more secure than desktop browsers, 
browser extensions, SMS, or mobile apps when involved in multisig 
authorization.  The point below was that risks with other channels are far 
higher if auth data is input from two channels through one, such as entering a 
2FA phone token and desktop password into the same desktop browser session - 
MITM phishing attack on websites that bypasses phone 2FA as an example, 
serendipitously timed yet tragic example of this scam with coinbase today: 
https://www.reddit.com/r/Bitcoin/comments/2ungby/fuck_i_just_got_scammed/

On the topic of hardened single purpose computers, and I mean no offense to our 
friends at Trezor, Case, or similar but I think the future of this type of 
security approach with bitcoin is extremely bright.  It’s just far more likely 
to involve chips integrated directly in PC / Mac motherboards and mobile 
devices / wearables where signing is done in the hardware inaccessible to the 
OS or BIOS.  This is a way for mainstream users to use bitcoin securely, 
integrate it with apps running from popular OS’s and get bitcoin into the 
internet on a very granular level, and Joe six pack and Sally soccer mom never 
even know they are using multisig.  It took 20+ years for people to get used to 
cards vs. cash.  The telephone took 50 years to catch on and become cost 
competitive. I think the key is making it invisible to the user.

From: Adam Weiss a...@signal11.com
Reply: Adam Weiss a...@signal11.com
Date: February 3, 2015 at 12:25:20 PM
To: Will will.mad...@novauri.com
Cc: bitcoin-development@lists.sourceforge.net 
bitcoin-development@lists.sourceforge.net
Subject:  Re: [Bitcoin-development] Subject: Re: Proposal to address Bitcoin 
malware  


Using a desktop website and mobile device for 2/3 multisig in lieu of a 
hardware device (trezor) and desktop website (mytrezor) works, but the key is 
that the device used to input the two signatures cannot be in the same band.  
What you are protecting against are MITM attacks.  The issue is that if a 
single device or network is compromised by malware, or if a party is connecting 
to a counterparty through a channel with compromised security, inputing 2 
signatures through the same device/band defeats the purpose of 2/3 multisig.  

Maybe I'm not following the conversation very well, but if you have a small 
hardware device that first displays a signed payment request (BIP70) and then 
only will sign what is displayed, how can a MITM attacker do anything other 
than deny service?  They'd have to get malware onto the signing device, which 
is the vector that a simplified signing device is specifically designed to 
mitigate.

TREZOR like devices with BIP70 support and third party cosigning services are a 
solution I really like the sound of.  I suppose though that adding BIP70 
request signature validation and adding certificate revocation support starts 
to balloon the scope of what is supposed to be a very simple device though.

Regardless, I think a standard for passing partially signed transactions around 
might make sense (maybe a future extension to BIP70), with attention to both PC 
- small hardware devices and pushing stuff around on the Internet.  It would 
be great if users had a choice of hardware signing devices, local software and 
third-party cosigning services that would all interoperate out of the box to 
enable easy multisig security, which in the BTC world subsumes the goals of 2FA.

--adam

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Re: [Bitcoin-development] [softfork proposal] Strict DER signatures

2015-02-03 Thread Pieter Wuille
On Tue, Feb 3, 2015 at 10:15 AM, Pieter Wuille pieter.wui...@gmail.com wrote:
 The much simpler alternative is just adding this to BIP66's DERSIG
 right now, which is a one-line change that's obviously softforking. Is
 anyone opposed to doing so at this stage?

I'm retracting this proposed change.

Suhar Daftuas pointed out that there remain edge-cases which are not
covered (a 33-byte R or S whose first byte is not a zero). The intent
here is really making sure that signature validation and parsing can
be entirely separated, and that signature checking itself does not
need a third return value (invalid encoding, in addition to valid
signature and invalid signature). If we don't want to make
assumptions about how that implementation works, the only guaranteed
way of doing that is requiring that R and S are in fact within the
range allowed by secp256k1, which would require an integer decoder
inside the signature encoding checker. I consider that to be
unreasonable.

In addition, a much cleaner solution that covers this as well has
already been proposed: only allow 0 (the empty byte vector) as invalid
signature. That would 100% align signature validity with decoding, and
is much simpler to implement.

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Re: [Bitcoin-development] Subject: Re: Proposal to address Bitcoin malware

2015-02-03 Thread Mike Hearn

 TREZOR like devices with BIP70 support and third party cosigning services
 are a solution I really like the sound of.  I suppose though that adding
 BIP70 request signature validation and adding certificate revocation
 support starts to balloon the scope of what is supposed to be a very simple
 device though.


Yes, X.509 is ... unfortunate. We'll have to wait and see how the
TREZOR team get on with implementing it. TREZOR doesn't have any OS at all
at the moment, so an implementation of PKIX will probably end up being
larger than their existing codebase.

That said, X.509 parsing is so security critical that the existing
codebases for it are by now pretty robust. Touch wood. So just having a
super stripped down OpenSSL implementation is probably good enough.

W.R.T revocation, BIP70 doesn't support this. If your private key leaks
you're currently hosed, identity wise, until the certificate expires. This
is obviously suboptimal. In a world where we all have infinite time and
resources the right fix will be to piggy back on an X.509 extension being
proposed in the browser world called Must Staple. It's a bit in the
certificate flags that tell the client to expect a stapled OCSP response
and to hard-fail if none is provided. By requesting the CA set this flag
when you get your certificate issued, you sign up for more pain but more
security.

An OCSP stapling extension to BIP70 would probably not be very hard to
implement, but it'd be pointless today because the client has no idea
whether to expect it or not. The absence of a certificate changes the UI by
showing you a random Bitcoin address instead of a human readable name, but
the absence of stapled OCSP would not result in any UI change.


 Regardless, I think a standard for passing partially signed transactions
 around might make sense


I'm hoping that the hardware wallet world just standardises on the TREZOR
protocol. It's well designed and these devices all have fairly similar
capabilities.
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Re: [Bitcoin-development] Subject: Re: Proposal to address Bitcoin malware

2015-02-03 Thread Brian Erdelyi

 Regardless, I think a standard for passing partially signed transactions 
 around might make sense (maybe a future extension to BIP70), with attention 
 to both PC - small hardware devices and pushing stuff around on the 
 Internet.  It would be great if users had a choice of hardware signing 
 devices, local software and third-party cosigning services that would all 
 interoperate out of the box to enable easy multisig security, which in the 
 BTC world subsumes the goals of 2FA.

I think a standard for passing partially signed transactions is a great idea as 
well.  This would support interoperability of wallets/clients and third-party 
services (if users choose to use them).

Brian Erdelyi
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Re: [Bitcoin-development] Export format for xpub

2015-02-03 Thread Levin Keller
Why even bother with the specific HD scheme such as BIP32  or BIP44. What
are the interesting parameters?

Required:

   - gap limit

Optional:

   - which node of the derivation chain is actually exported (m0' for
   BIP32, m44'0'account' for BIP44)
   - which subnodes are used for external and internal purposes
   - creation date

To import the data in a read only application it is not important which
node one actually gets and in all implementations the subnode of the
exported node 0 is used for external addresses and 1 for internal
addresses.

There is no usecase to export any higher node than m0' in BIP32 or
m44'0'account' as one can only derive any child nodes of the higher nodes *with
the private master key*. As for lower nodes (like further down the path)
there is also no need to export because in all implementations today they
will only give around half of the used addresses.

So I think a more general but very useful export scheme would be:

bitcoin-pub-export:xpub[gibberish]?gaplimit=[number]path=[path in
derivation tree]subchains=[numbers]creationdate=[unixtimestamp]

Why not have more descriptive parameters? Saving on data?

I am a big fan of unix timestamps. Would vote for Andreas' format on the
creation date.

Cheers

Levin

2015-02-03 1:22 GMT+01:00 Pavol Rusnak st...@gk2.sk:

 On 03/02/15 01:05, Andreas Schildbach wrote:
  I don't think that parameterizing will work, we can't predict future
  BIPs. It's the same as for BIP43, in the end we agreed on just putting
  the BIP number.

 Hm, let me put the questions the other way around:

 What gap limit should a wallet use if it encounters h=bip32?

 What h value should I use for myTREZOR wallets? Which is essentially a
 BIP44 wallet that produces h=bip32 xpubs with gap limit 20 ...

 --
 Best Regards / S pozdravom,

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Re: [Bitcoin-development] Export format for xpub

2015-02-03 Thread Andreas Schildbach
On 02/03/2015 10:33 AM, Levin Keller wrote:

 Why not have more descriptive parameters? Saving on data?

Yes. QR codes are very size sensitive.




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Re: [Bitcoin-development] Export format for xpub

2015-02-03 Thread Pavol Rusnak
On 03/02/15 11:37, Andreas Schildbach wrote:
 Not really IMHO. Keys can be used on multiple blockchains.

Ah, correct. Timestamp it is.

Nitpick: They cannot be used on multiple blockchains according to BIP32.
In BIP43 we fixed that. :-)

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Re: [Bitcoin-development] Export format for xpub

2015-02-03 Thread Andreas Schildbach
On 02/03/2015 01:22 AM, Pavol Rusnak wrote:

 Hm, let me put the questions the other way around:
 
 What gap limit should a wallet use if it encounters h=bip32?

It should follow the spec. I know BIP32-hierarchy is short on gap
limits, which is why (amongst other reasons) I expect
BIP32-hierarchy-based wallets migrate to a better standard at some time.

 What h value should I use for myTREZOR wallets? Which is essentially a
 BIP44 wallet that produces h=bip32 xpubs with gap limit 20 ...

If it follows BIP32, h=bip32 is fine.



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Re: [Bitcoin-development] Export format for xpub

2015-02-03 Thread Andreas Schildbach
On 02/03/2015 11:10 AM, Pavol Rusnak wrote:

 Another option that might make sense is the block number.

Not really IMHO. Keys can be used on multiple blockchains.


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Re: [Bitcoin-development] Subject: Re: Proposal to address Bitcoin malware

2015-02-03 Thread Eric Voskuil
On 02/03/2015 04:04 AM, Will wrote:
 An idea for the bitcoin malware proposal below, the idea is at the bottom…
 ...
 The trick we need to look at is how to use the bitcoin network as a
 delivery mechanism to bypass the need for the trusted third party in the
 example above. 

Using the Bitcoin network would be a convenience, certainly not a
requirement. Any public store (or other channel accessible to all
signers) would do.

 Instead of the second factor routing through a 3rd party
 to the intended recipient, we have another option - one that doesn’t
 require core development either.

Absolutely, there is no need for a trusted third party in the case of
MFA unless that party has independent judgement in the decision to sign.
For example, if the third party is the trustee of a fund from which a
beneficiary wants to withdraw.

If you are just routing a decision back to yourself a third party makes
no sense. Oddly most of the services in operation today are doing just
that. You will end up authenticating to the third party from a platform
you control, which means that the platform must be trusted as much as
the third party. Why not just trust the platform and no third party? It
doesn't reduce the number of factors but it certainly reduces the attack
surface.

 1) Sender  signs signature 1 via desktop  bitcoin network 2/3 P2SH
 2) Mobile app also used by sender receives req. from bitcoin network to
 sign signature - not through the site in 1 (similar to the 2nd channel
 between the website and security company above)
 3) Sender  signs signature 2 via mobile app (or any separate
 device operating on a different network - heck could be radio)  2/3
 signatures, transaction authorized

There's no need for the devices to be on independent networks. You can
safely remove that constraint. The partially-signed transaction can be
encrypted to the other signatories (for privacy) or it can be sent in
the clear. And ultimately all platforms in the scheme are connected to
the Internet, even if it's via sneakernet.

The important requirement is that the signing platforms are independent
and that the signers inspect the transactions on those platforms. This
preserves the benefit of MFA, which is that the signing platforms must
be compromised independently.

 ...
 If there was a way to perform 2/3 multisig without requiring a second
 band, performing the function safely by somehow knowing if the service
 is performed from a compromised device through some sort of
 on-blockchain anti-malware check by validating the signature of the
 signing application by comparing it to a signature recorded when the
 multisig address was funded,  that would be a really neat breakthrough.
  Food for thought, but I can’t see how that could be executed in a way
 where signatures couldn’t be spoofed from a compromised device.  If
 someone cracks that problem, it’s a really big advance for information
 security.

Once you've done this you are talking about two independent signing
platforms. Plug two trustworthy signing devices into a PC and you've
done it. This is because the host environment (the PC in this case) is
not trusted in the first place. Two untrusted environments are no better
than one. It's only if the environments are trusted that they must be
independent.

But therein lies the problem. The physical proximity of two trusted
hardware devices exposes them to a single attack in the case of physical
theft or loss. So to guard against that threat the devices must be
independently stored. This presents a problem when it comes to usage.

This is the central problem of MFA. It's not possible to control
multiple factors while not exposing them to compromise. This is true
whether we are talking about multiple physical devices or a remote
service, since in the remote case the secret must still be accessible to
the person in control.

In the case of truly independent decisions MFA is strongest. But short
of that there's no reason for a remote third party. One can probably
accept the risk of securing multiple devices with the home, etc - and
needs to do this even if using a third party. On the other hand, walking
around with all necessary factors, or keeping them in the same safe, is
tantamount to having just one factor.

e

 On 02/02/2015 02:54 PM, Eric Voskuil wrote: 
 On Feb 2, 2015, at 11:53 AM
 http://airmail.calendar/2015-02-02%2011:53:00%20MST, Mike Hearn wrote: 
 
 In sending the first-signed transaction to another for second 
 signature, how does the first signer authenticate to the second 
 without compromising the independence of the two factors? 
 
 Not sure what you mean. The idea is the second factor displays the 
 transaction and the user confirms it matches what they input to the 
 first factor. Ideally, using BIP70, but I don't know if BA actually 
 uses that currently. 
 
 It's the same model as the TREZOR, except with a desktop app instead 
 of myTREZOR and a phone instead of a dedicated hardware device. 
 
 Sorry for the 

Re: [Bitcoin-development] Export format for xpub

2015-02-03 Thread Pavol Rusnak
On 03/02/15 10:33, Levin Keller wrote:
 bitcoin-pub-export:xpub[gibberish]?gaplimit=[number]path=[path in
 derivation tree]subchains=[numbers]creationdate=[unixtimestamp]

I cannot come up with an usecase where path parameter would be needed.
FWIW childnumber and depth are already expressed in xpub itself.

I like the general idea of subchains parameter, but I would like to
further specify it:

a) parameter should contain values described as comma separated
   list of values (such as 0,1,2,3,4)

b) consecutive values can be shortened via dash (0,1,2,3 == 0-3)

c) should we allow non-consecutive values (e.g. 0,1,3,8)?
   I am not sure. If not the subchains param can contain just upper
   bound of indexes to scan (e.g. 3)

d) a wallet uses just the first specified chain to generate receiving
   addresses, uses the other chains just to add to the balance

   OR should a wallet be able to generate receiving address for second,
   third, etc. external chain? if yes, we should split subchains param
   into external and internal params both containing a list of
   numbers. this seems like an overkill to me and I am fine with using
   just the first chain as the external one.

 Why not have more descriptive parameters? Saving on data?

Yes. The longer the string, the bigger the QR code.

 I am a big fan of unix timestamps. Would vote for Andreas' format on the
 creation date.

I am not against Unix timestamps, I just said I expected something else
there. Unix timestamps have a lot of advantages. Another option that
might make sense is the block number.

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Best Regards / S pozdravom,

Pavol Rusnak st...@gk2.sk

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