How do mining pools protect their wallets?

2

Since Slush took quite a hit due to the hacked Linode servers, I'm wondering how do mining pools protect their wallets from theft of file and theft of private keys in those files?

ThePiachu

Posted 2012-05-11T00:01:04.823

Reputation: 41 594

Answers

1

If a pool makes a payout, the mechanism that performs the payout must have use of a private key. Therefore I don't believe there can be any secret to securing this private key beyond good operational security best practises. This would include operating with a minimum of "cash-on-premises", so the wallet used by the payout mechanism would only have enough BTC to cover payouts for the next few days, relying on refills performed by an entirely separate, manual process.

jl6

Posted 2012-05-11T00:01:04.823

Reputation: 1 219

1Multi-signature transactions will open a whole new world of ways to make Bitcoin-paying sites more secure.Meni Rosenfeld 2012-05-11T15:35:43.323