TREZOR is a hardware wallet providing the highest level of security and convenience for a common computer user.
Unlike for example a cold storage (offline storage or paper wallet), TREZOR also signs transactions internally. Spending bitcoins is made securely without exposing your private keys to a malware.
TREZOR Hardware Design
TREZOR is a small USB device with a display and two buttons.
It connects to a computer via a micro USB (like a mouse or a keyboard). The limited USB protocol only allows to send a transaction template to the device and protects the wallet against malware.
The display allows the user to visually verify the payment address and the amount to be sent. In order to proceed the transaction, a physical human interaction (pressing the button) is required.
TREZOR Software Design & Security
TREZOR uses hierarchical deterministic wallet creation (BIP 0032) which makes regular backups of private keys unnecessary.
When first initialized, a mnemonic code of 12,18 or 24 words, the recovery seed, is created. In case the device gets lost or stolen, the user can recover the entire holdings including transaction history into a new device or other compatible wallet.
TREZOR provides the user optional protection mechanisms: PIN protection and passphrase encryption.
A PIN is set by the user during the setup. It protects TREZOR against being used by unauthorized persons. The wallet creators have invented a secure way of entering the PIN that can’t be keylogged and misused.
Encryption passphrase can be set on top of the PIN. This protects the device in case of seizure. Multiple passphrases can be used for plausible deniability.
Compatibility of TREZOR
TREZOR is supporting Bitcoin, Litecoin and Namecoin. The developers are open to add support for other significant altecoins in the future. Currently no Litecoin or Namecoin clients are ready to work with TREZOR.
Today it is compatible with:
Usage of TREZOR
TREZOR needs an online wallet or a desktop client to broadcast the transactions signed by the device to the blockchain.
When first using the device:
- go to myTREZOR.com
- allow the browser plugin to be installed (you will be prompted)
- enter the Setup page and
- define Device Label
- choose the length of the recovery seed (12, 18 or 24 words)
- set PIN
- and optionally a passphrase encryption
In the following step, a recovery seed is generated. This seed needs to be written down on a paper and kept in a safe place.
to be continued ... :)
TREZOR FAQ: www.bitcointrezor.com/faq