Understand and master the principles of privacy protection when using Bitcoin
- The Satochip costs around €25, and since the applet is open-source, you can install it yourself on a blank smartcard. You then need to add the cost of the SeedSigner components and the extension for reading smartcards: depending on where you buy this hardware, the total should be between €70 and €100.
- All the software involved in the setup is open-source: the SeedSigner firmware and the Satochip applet.
- You benefit from a certified security element.
- The configuration can be carried out entirely DIY, without recourse to hardware explicitly intended for Bitcoin use, which can provide a form of plausible deniability and resistance to certain external threats (including, depending on the country, state pressure). This is also an interesting solution if access to commercial hardware wallets is restricted or impossible in your region.
1. Materials required
- The usual equipment needed by a classic SeedSigner :
- a Raspberry Pi Zero with GPIO pins,
- 1.3" Waveshare screen,
- a compatible camera,
- a microSD card.
- The SeedSigner extension kit, available from the official Satochip store, which lets you read and write to a smartcard directly from your SeedSigner. Another option is to use an external smartcard reader, which can be connected by cable to a Micro-USB port on the Raspberry Pi. However, I haven't tested this solution myself;
- A Satochip, or alternatively a blank smartcard on which to install the Satochip applet (the extension kit sold by Satochip already includes a blank smartcard). Satochip's extension kit also supports the SIM JavaCard format. So you can opt for this format if you prefer.
2. Install firmware
.zip) corresponding to the Raspberry Pi model you're using.- Insert the microSD card into your computer;
- Launch Etcher ;
- Select the
.zipfile you have just downloaded; - Select the microSD card as the target;
- Click on
Flash!.
3. Assembling the smartcard reader
4. Flash a smartcard with the Satochip applet (optional)
Tools > Smartcard Tools menu on your SeedSigner.DIY Tools > Install Applet.Satochip applet.5. Creating and saving seed
5.1. Generate seed
- Go to the
Tools > Camera / Dice Rollsmenu; - Then follow the entropy generation process according to the chosen method;
- Finally, back up the seed on physical media and check the backup carefully.
5.2. Saving the seed on a Seedkeeper
Backup Seed menu.To SeedKeeper.Label to easily identify your different secrets stored on Seedkeeper. You can, for example, simply keep the wallet imprint or explicitly indicate Seed. The choice depends on your preference and risk.5.3. Save seed on the Satochip
Tools > Smartcard Tools > Satochip Functions.Initialise with Seed.I Understand to confirm.6. Import wallet into Sparrow
6.1 Preparing the SeedSigner and Satochip
Tools > Smartcard Tools > Satochip Functions menu.Export Xpub.Single Sig.Native SegWit.Coordinator, i.e. the wallet management software you wish to use. Here, we'll be using Sparrow Wallet.xpub) allows you to view all the addresses derived from your seed (on the first account). It does not, however, give access to your funds: its disclosure would compromise your privacy, but not the security of your bitcoins. In other words, it allows you to observe your balances, but not to spend them.I Understand.Export Xpub if you are satisfied with the information displayed.6.2 Importing a new wallet into Sparrow Wallet
File → Import Wallet.SeedSigner, then select Scan.... Your webcam will be activated: scan the dynamic QR code displayed on your SeedSigner screen.Create Wallet. Sparrow will then ask you to set a password to lock local access to this wallet. Choose a strong password: it protects your data in Sparrow (public keys, addresses, labels and transaction history). However, this password is not required to restore the wallet in the future: only your mnemonic phrase (and possibly your passphrase) will be.Master fingerprint displayed in Sparrow Wallet matches the one previously found on your SeedSigner.7. Receiving and sending bitcoins
7.1 Receiving bitcoins
7.1.1 Generating a reception address
Satochip-SeedSigner wallet using your password. Check that the software is connected to a server (indicator at bottom right). Then, in the sidebar, click on Receive.- The address in text format (starting with
bc1q...if you're using P2WPKH, as in this example) ; - The associated QR code ;
- A
Labelfield, useful for tracing your transactions.
Label field, then confirm.Label : Sale of the Raspberry Pi Zero
7.1.2 Address verification on the SeedSigner
Scan. Scan the QR code displayed on your computer, then select Use Satochip card.Native SegWit), enter the Satochip PIN code to unlock it, and validate the xpub information.Address Verified.7.1.3 Receipt of funds
Transactions tab of Sparrow Wallet.7.2 Send bitcoins
- Transaction creation in Sparrow ;
- Signing this transaction on the Satochip, via the SeedSigner ;
- Finally, the transaction is broadcast over the network from Sparrow.
7.2.1 Creating the transaction in Sparrow
Send tab in the left-hand sidebar. However, I prefer to use the UTXOs tab, which allows you to practice Coin Control. This method offers precise control over the UTXOs spent, to limit the information revealed during your transactions.UTXOs tab, select the coins you wish to spend, then click Send Selected.- In
Pay to, paste the recipient's address or scan their QR code using the camera icon ; - In
Label, add a label to trace this expense; - In
Amount, enter the amount to be sent; - Finally, choose the charge rate according to current network conditions (estimates are available at mempool.space).
Create Transaction >>.Finalize Transaction for Signing.Show QR.7.2.2 Signing the transaction with Satochip
Scan, then scan the QR code displayed on Sparrow.Use Satochip card option.- The amount sent,
- Destination addresses,
- Associated transaction costs.
Review Details and scrutinize all the information directly on the SeedSigner screen. The most important points to check are the amounts sent, the destination addresses and the transaction fees.Approve PSBT to sign the transaction using the Satochip.7.2.3 Broadcasting the transaction from Sparrow
Scan QR.Transactions tab of Sparrow Wallet.8. Get your wallet back
- Using a classic SeedQR with the SeedSigner ;
- By recording the mnemonic phrase on a physical medium;
- Or by storing it on a Seedkeeper, as explained in section 5.2.
8.1. Retrieve your wallet with Satochip
Settings tab and click Replace.Import next to Satochip.8.2. Retrieve your wallet with SeedSigner
- Enter your mnemonic phrase manually in the
Seeds > Enter 12-word seedmenu.
- Scan your SeedQR by clicking on the
Scanbutton on the home page.
- Or load your seed from a Seedkeeper, via the
Seeds > From SeedKeepermenu (this is the method I'm using in this tutorial). You'll simply need to enter the Seedkeeper PIN and select the secret to be used as seed on the SeedSigner.
- By purchasing your equipment directly on the Satochip website;
- By making a donation to the SeedSigner project;
- By subscribing to Crypto Guide's YouTube channel, run by the person who maintains the GitHub repository hosting the modified firmware we used in this tutorial.
Author
This tutorial has been written by Loïc Morel
You can say thanks by tipping the professor.
I write educational content about Bitcoin.
Credits
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