Joko on Nostr: Withdrawing Bitcoin from an exchange or receiving Bitcoin in general can very ...

Withdrawing Bitcoin from an exchange or receiving Bitcoin in general can very
insecure.

If an attacker has access to your host device, they might be able to alter what
Bitcoin address is passed along to the receiver.



How can you be sure that the other person or exchange has received the correct
Bitcoin address that you sent them?



By making use of public key cryptography, you can create an encrypted message,
which includes your withdrawal address, your account ID and a secret. It is
encrypted to the known public key of the exchange (or person).



The exchange then decrypts the message and presents the user with the secret.
This way, the user can be sure that the exchange has definitely received his
Bitcoin address.

This protocol does not exist yet, but if there is sufficient demand for it, we
will work with our partners to implement it.

You can find more information about this in our blog post:
https://bitbox.swiss/blog/securely-withdrawing-from-an-exchange/