hugomofn

Founder of nunchuk.io

Public Key

npub1qp302p7ry80x8xpcafm4d4szpxvzy8r70lyveg39gk0xgycwu35s06yn58

Profile Code

nprofile1qqsqqch4qlpjrhnrnquw5a6k6cpqnxpzr3l8ljxv5gj5t8nyzv8wg6gpzemhxue69uhhyetvv9ujuurjd9kkzmpwdejhgqgewaehxw309ac8yetdd96k6tnswf5k6ctv9ehx2ap03d8fz7

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relay.primal.net

premium.primal.net

Author Public Key

npub1qp302p7ry80x8xpcafm4d4szpxvzy8r70lyveg39gk0xgycwu35s06yn58

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Last Notes

2025-05-16 16:53:43

I don’t think people fully grok the risk of KYC in Bitcoin.
KYC honeypots & data leaks are already dangerous in the analog world. But zoom out and fast-forward 20 years into a hyper-digitized, hyper-bitcoinized future, and that risk 10x’s.
In the analog, pre-hyperbitcoinized world, if someone gets your family’s name, SSN, and address, what’s the worst the can happen?
Maybe they impersonate you. Maybe they sell your data to ad companies.
It’s bad, but not end-of-the-world bad.
But with Bitcoin — a digital bearer asset — it’s different.
Once someone knows your family holds a large stack, you’re a forever target.
You don’t get spammed. You get hunted.
By North Korean hacker teams and ransomware crews from every corner of the world. Forever.
You do not want a target on your family’s back for eternity.
Zoom out & think long-term. KYC isn’t just a risk. It’s a ticking time bomb.
P.S. Some historical context: KYC was invented before the Internet.
Not only has it failed its objectives, its creators NEVER anticipated a world shaped by the Internet & Bitcoin.
The ramifications of this outdated policy will be insane in the years to come. A lot of people will get hurt.
#note1g2r…2y54

2025-02-27 06:41:25

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Friends don’t let friends use browser-based wallets.

2025-02-23 15:31:10

The greatest cognitive dissonance in Bitcoin is probably from Bitcoiners who correctly identify Ethereum as a fiat grift, but still use browser or Javascript-based wallets.
The complete opposite of low-time preference and being fundamentally sound. #note1s9n…09j5

2025-01-20 08:48:06

AI and Bitcoin are discoveries.
They reveal themselves once we’ve fully harnessed the power of moving atoms at the speed of light, fueled by an inordinate amount of energy. The entire century before this was just preparation.

2025-01-20 08:39:09

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Agreed.

2025-01-20 08:11:47

The world is converging on two forces: AI and Bitcoin. It’s probably not a coincidence that both rely on power-hungry chips and vast amounts of energy—two sides of the same coin.
Prediction: an energy race is coming to see who dominates both fields. The next 10 years will be wild.
P.S. We thought the Internet was our final form. Turns out it was just a stepping stone to discovering AI and Bitcoin. 😀

2025-01-12 09:53:27

Part of the infatuation with Bitcoin vaults is believing that you can “have your cake and eat it too”: mixing spending with saving.
In reality, people don’t give a shit what they use for spending (e.g., they’ll move USDT on Tron if it’s convenient). They only care about security for generational wealth.
You can observe this behavior empirically: when people pick a payment solution, their #1 priority is convenience—“I just want to pay, and pay fast.” That’s why PayPal, custodial LN, and USDT dominate. But for savings, it’s all about preserving purchasing power and security.
So at its core, the “problem” vaults try to solve is mixing high-time preference usage with low-time preference usage.
And you end up with these Frankenstein setups that are suboptimal for both spending AND saving.

2025-01-09 09:29:21

Nostr might be a great alternative to Medium or Substack for long-lived, long-form content.
I’d love to see a separate category for blogs and articles—it would help keep them organized and distinct from quick notes.
Off-the-cuff thoughts vs. deep dives.

2025-01-02 03:15:38

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Great question Big Dan Brown.
Let me rephrase your question: What happens to the inheritance service if Nunchuk ceases to exist?
The short answer is that just like other types of services, if the business goes away the services will no longer be available. What we recommend to our users to mitigate unexpected events (such as Nunchuk ceasing to exist) is to use a "rolling short timelock" approach: Set an Activation Date not too far in the future, such as one or two years from today. Then the owner can review the inheritance plan every year and push the date back if necessary.
To help remind users, we start sending email notifications as the timelock is about to expire, starting at the 6-month mark. This approach allows users to lengthen the time the inheritance can be claimed as needed, while guarding against long-term uncertainties. If something unfortunate happens to Nunchuk, the owner can use their own keys to move funds to a new wallet. If something unfortunate happens to the owner, their beneficiaries can claim the inheritance quickly without having to wait many years.
Since the odds that Nunchuk ceasing to exist and the owner passing away within 1-2 years is small, the approach above reduces risks significantly.
Hope that answers your question.

2024-12-29 00:13:43

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If I have to guess, it’s likely because it isn’t written natively.

2024-12-29 00:01:25

Self-custody is the cornerstone of Bitcoin. The day self-custody dies, Bitcoin dies with it.
Nunchuk is fully committed to improving free self-custody tools—it’s 1000x more important than our paid services.
Principle over money. #note1lw3…m06e

2024-11-06 08:26:24

Whether you like Elon or not, you must give him credit for buying Twitter and possibly changing the trajectory of history by keeping free speech alive.
Some would look at it as a victory, but I’d rather look at it as a strong lesson/warning for Bitcoin, of what to AVOID.
We don’t want things to get so bad that the whole thing comes down to depending on the act of one single individual to survive.
The (naive) architecture of the Internet allowed information to be centralized and censored. It’s not a victory, it’s a walking disaster. Even if Elon can temporarily protect free speech, how long can it last?
All efforts must ensure Bitcoin remains as decentralized as possible. #note1lgj…7zq8

2024-11-06 08:00:59

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I’m optimistic on that, given the fact that no one/country has a monopoly on cheap energy.
Bitcoin ETFs worry me more.

2024-11-06 07:10:34

When the Internet was invented, everyone thought it would democratize knowledge. Fast forward 30 years, it got so incredibly centralized and censored that it took one man buying Twitter to (hopefully) save it from itself.
What’s the equivalent of that threat in Bitcoin?

2024-10-21 04:39:53

IMO, one of the biggest threats to Bitcoin is the ratio of Bitcoin held by exchanges and ETFs compared to the total supply.
We sort of got lucky that Wall Street ignored Bitcoin for the first 15 years, resulting in an ownership distribution that currently favors individuals (>50%).
2 problems:
(a) it could be temporary
(b) high coordination costs among individuals in the event of a fork
As Bitcoin goes mainstream, complacency and a loss of vigilance among ‘Bitcoiners’ is almost inevitable. The further we get from the last fork crisis, the more likely this becomes — if not with today’s Bitcoiners, then perhaps in 10-20 years.
And I want to emphasize that this is a UNIQUE problem to Bitcoin.
Gold doesn’t have this problem. You can perhaps find ways to inflate its supply, but you cannot fork gold. Or real estate.
It is a unique problem because Bitcoin relies on continual PoW/Nakamoto Consensus.
At the heart of Bitcoin is a system that sustains itself with ‘heartbeats’ roughly every ~10 mins. Each one secures the network, but also retroactively locks down the entire ledger, all the way back to the genesis block.
In other words, Bitcoin is a LIVING thing. Unlike gold which is an inanimate object.
And because Bitcoin is a live and living thing, it CAN be tampered with. Extremely difficult, but possible.
Bitcoin incentive scheme must hold and Bitcoiners must remain vigilant for the whole thing to work. Proper checks and balances.
This is why self-custody is so incredibly critical to Bitcoin’s success.
Without the economic majority holding Bitcoin in self-custody, the system can be co-opted, bringing us back to square one: the reunification of money and state.
This is also why I see most concerns about Bitcoin as secondary. Yes, Bitcoin can and will improve on privacy. Yes, it can be a decent, “good enough” MoE. But it doesn’t need to excel at these.
It must first lock down the self-custody and SoV use case — or the whole system will collapse like quicksand.
To reiterate: it must be INSANELY EASY to self-custody Bitcoin, or the rest of the stuff we build doesn’t matter. Not one bit.
P.S. About Saylor, I suppose his vision is a future where Bitcoin and the state co-exist peacefully. In other words, the state will gladly accept Bitcoin as a check on its once unchallenged power to print money.
But that’s just one possibility — and it doesn’t seem like the likely one. #note1ukh…my48

2024-10-19 02:33:41

We either continually set and pursue higher goals, or we regress and die mentally. That’s the essence of the saying ‘most people die at 25.’
What I’ve learned is that there’s no in-between. Retirement is a false dream. Stasis is death.

2024-10-18 16:57:37

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Agreed. And thank you for your work 🫡

2024-10-12 21:39:33

Increased adoption of distributed multisig benefits all Bitcoin users, even singlesig users.
An attacker may assume they need to compromise multiple locations if they SUSPECT multisig is in use.
So even if you don’t use multisig, it’s in your interest to encourage its adoption.
#multisigftw

2024-10-12 01:19:10

🚫 Do NOT use a hot wallet (mobile or desktop) for main Bitcoin savings
✅ Do use a phone as a watch-only wallet coordinator for distributed multisig for Bitcoin savings — get a second, dedicated phone for this purpose. #note1p09…upal

2024-10-09 12:52:56

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I don’t. That’s probably why.

2024-10-06 12:58:04

Why do some Nostr posts/comments show up on Primal but not Damus (and vice versa)? Relay issue? 🤔

2024-10-06 12:51:01

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In a perfect world, I’d agree with you.
But we don’t live in one. I mean take the entire defense industry for example. Many weapons, offensive or defensive, are speculative in nature: you don’t know how effective they are until they’re actually used in a war zone.

2024-10-06 12:26:50

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I’m more optimistic on decoy wallets. Of cos they don’t address all types of attacks (no security feature ever does), but one can easily imagine how they can be useful *at least* in the case of non-targeted attacks, which will probably become more common when Bitcoin goes mainstream. It will not be unusual for a random person on the street to own Bitcoin.
The anecdote you cited about one victim refusing to give up anything and telling the attackers to shoot her: she might very well got lucky - she could’ve ended up dead.
At the end of the day, stories/anecdotes are just that. They don’t have predictive power. We don’t have substantial data on how many users have used decoy wallets, and how many have used it successfully or unsuccessfully.
TL;DR: Decoy wallets are just one tool in a large toolset. Writing them off based on a few data points seems a bit premature IMO.

2024-10-06 00:25:08

“The majority is not always right” is true for normies but also true for Bitcoiners.
Bitcoiners got many things right, but many things wrong as well. For examples:
1/ Believe in S2F nonsense
2/ Obsessed with scaling payments use case when the killer use case is SoV
3/ Avoid phones for main savings #note1p09…upal

2024-10-05 15:20:08

Insisting on using desktops for Bitcoin savings is like clinging to mainframes in the era of cloud or sticking with search engines in the age of Gen AI. #note1p09…upal

2024-10-05 12:15:11

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> main savings account should be on a separate device from teh one you carry around
That’s exactly what I said. Reread point 2. Not sure what you’re disagreeing about.
> multisig is not going to help for hot storage
I’m NOT discussing hot spending wallets, I’m talking about main savings. (So your LN example also isn’t relevant here).

2024-10-05 11:53:46

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That’s what I said. The phone (or desktop) should be a watch-only interface.

2024-10-05 11:49:56

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P.S. Nunchuk ships both mobile and desktop apps, but IMO mobile is the future of Bitcoin self-custody.

2024-10-05 11:49:01

People who say “don’t use phones for your main Bitcoin savings” never make sense to me.
1/ Security matters: Phones have a much smaller attack surface and are designed with security in mind, unlike desktops burdened with legacy software and hardware. What's easier to crack—a Windows machine or an iPhone?
2/ Dedicated devices: If you're concerned about your main phone being out and about too much, get a second, dedicated phone for your savings. You should also use a dedicated desktop if you're truly serious about security. Avoiding phones but using a non-dedicated desktop filled with software means you don’t care about security as much as you think you do.
3/ Use multisig: If you set your wallet up properly, the phone should hold no private keys—only a watch-only interface. The wallet interface should be the *least* of your worries. Distributed multisig keys are your main defense. Focus your energy on securing the actual keys.
4/ Use a decoy wallet: If you can’t get a second phone, use a decoy wallet. You can use a decoy wallet even if you have a dedicated phone.
So don’t take bad advice, even from Bitcoiners. Think from first principles.
Don’t be stuck in the 20th century. DO use phones for your main Bitcoin savings.

2024-09-05 07:49:56

Key quote regarding Yubikey vulnerability: "We estimate that *the vulnerability exists for more than 14 years* in Infineon top secure chips."
32 million Yubikey units have been sold.
Multi-vendor multisig is the only rational setup for your BTC savings.
https://arstechnica.com/security/2024/09/yubikeys-are-vulnerable-to-cloning-attacks-thanks-to-newly-discovered-side-channel/

2024-08-20 07:15:40

There’s something satisfying about Nostr feeds being deterministic: if you sign in on different Nostr clients or different devices, you most likely will get the same exact feed for a given moment of the day. It’s true even for different moments of the day: if you scroll long enough you will encounter the old set of posts, minus a few new ones for the last X hours.
It’s satisfying because you know the feed is not gamed. That this is the raw, unmanipulated experience. Unlike something like X which increasingly show you garbage that plays on our worst instincts.
On the other hand, once the amount of content on Nostr blows up, some filters will likely be needed. It’d be cool if you can craft your own feed algorithms based on a human-readable language, or a set of commonly-defined control knobs. Something like:
1. Prioritizes posts from people I regularly interact with (with weights I can go in and adjust)
2. Prioritizes posts that have some minimum number of likes/comments from the people I follow
3. For freshness: Occasionally surface posts from accounts from my extended network (friends of friends), provided that they pass some level of quality control (e.g. account older than Y months, minimum likes, etc.).
And you can keep finetuning your algorithms as you go along. Have a few that you quickly switch between. Share your algorithms with others, etc.

2024-08-07 01:57:24

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Anti-exfil techniques spill engineering challenges into the user space. They also add a new dependency on the wallet coordinator to perform security-sensitivity tasks.
Tasks which they are not well suited for.
How can you even verify that the coordinator will be able to provide good entropy? You can’t.
So there’s also this hidden danger of using anti-exfil with singlesig with a coordinator running in unsafe environments, and THINK you’re safe, but you’re not. Turtles all the way down.
Just use multisig and be happy.

2024-08-07 01:00:36

In the world of Bitcoin wallets there is a plethora of security threats that you need to stackrank.
What anti-exfil would do is to break 90% of the current wallets’ UX to solve a fundamentally low-risk threat, relative to other threats. When better solutions exist.
A big no-no.
Introducing a new round trip / new interaction every single time a user signs a Bitcoin transaction is a terrible idea from both UX and engineering perspectives.
It violates Single Responsibility Principle. Coordinator should stay purely coordinating. No more, no less.

2024-08-01 06:29:57

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Great comment Rusty!
Just the basic idea of identifying that there are 3 groups of people (can afford; can sometimes afford; and cannot afford a UTXO whatsoever) is a huge upgrade over past conversations, which tend to jump straight into technical details and gloss over the actual user profiles and market demand.
Personally, I agree that more research is warranted. I’m not particularly optimistic on UTXO-sharing as a solution for people who can’t afford standalone UTXOs at all because of the group coordination cost, “Tragedy of the Commons”issue (LN counterparties are heavily incentivized to police their LN channel state, whereas in a Timeout Tree you can freeride others to do the policing for you, leading to no one doing it at all), “ghettorization” issue as you mentioned, and the inevitable complexity of any such solution. Secondly, did anyone bother to ask whether users like sharing at all? Why would they opt for a complex sharing solution when they can use something like gold for savings.
I’m slightly more bullish on locally-run ecash mints where people fall back to long-built relationships and hard-earned reputation to prevent cheating. Basically, use the social layer to address a technical limitation.
I like your quote here: “can’t engineer a solution if we can’t think about the problems.” That’s a great way to think about it. As someone else once said, the most common mistake engineers often make is to “optimize for something that shouldn’t really exist”. I’ve seen it happen way too many times, being an engineer myself. Just because UTXO-sharing with large N is possible, doesn’t mean it is ideal or will actually have a market.
In the spirit of thinking deeply about the problem (and not the solutions), it would be wise to also visit assumptions such as there will be 10 billion people who want sovereign UTXOs and the responsibilities that come with it. I think that assumption is highly unrealistic. IMO the actual demand will remain well below 500 million people, realistically more in the range of 100-200 million people. Being your own bank, as it turns out, is quite a heavy burden.
So if you believe in these numbers, Bitcoin does not have a scaling problem. At the very least, it’s not urgent at all. The math might work out by just making current things as efficient as possible.

2024-07-28 03:07:42

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💯

2024-04-07 10:42:05

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Thank you !

2024-04-02 01:59:11

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I’ve been lurking on Damus for a while 😛 Great progress on UI/UX ! Cheers.

2024-04-02 01:34:55

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Agreed. Bitkey design clearly optimized for usability and I think they swung a bit too hard in that direction. Too many security concerns to be used for large savings. The mobile phone in particular is highly vulnerable. An attacker would know they can get to an owner’s bitcoins through the phone and the phone alone (just by waiting out the Delay and Notify protocol). If popularized, it will incentivize kidnappings.
I wrote a full review of Bitkey here: https://nunchuk.io/blog/bitkey

2024-03-27 23:54:39

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Two different devices, ideally always geographically distributed.

2024-03-27 23:53:25

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Author here. Thanks @npub1sg6…f63m ! Hope you guys can make some adjustments. Cheers.

2023-09-13 07:41:55

Calling all self-custody experts!
Have you ever thought about starting a Bitcoin business that focuses on orange-pilling people and helping them self-custody? Putting your passion and skills to good use?
Now you can.
Introducing Byzantine: Collaborative Custody Platform-as-a-Service.
Read more about it here:
https://nunchuk.io/blog/byzantine

2023-09-09 04:21:38

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Yes.
https://x.com/nunchuk_io/status/1661412619218227200

2023-07-02 01:39:44

@npub1tea…gq5u Verifying My Public Key: "hugohanoi"

2023-06-30 14:26:13

I just published ‘Passphrases Are Not the Solution for Bitcoin Custody’.
https://hugonguyen.medium.com/passphrases-are-not-the-solution-for-bitcoin-custody-4f967a339b1b

2023-03-05 16:42:15

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Bob knows what’s up

2023-02-25 14:45:30

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Active >> passive is a great way to approach the Internet. Thanks for sharing!

2023-02-20 06:24:33

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Yeah we need widespread descriptors support first for safe + interoperable Taproot scripts.

2023-02-01 18:50:15

First post. My AMA on Stacker News. Ask me anything about Nunchuk!
https://stacker.news/items/129571