this post was submitted on 15 Apr 2024
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Privacy
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The password is literally a pin
If you set a small pin, perhaps. Most people set a password
Pin is the suggested option, so I really doubt "most" of the people choose password
Most people who care* I guess would be more apt
For the people who really care, they can disable The pin. I believe the client will generate a BIP 38 password randomly, and use that for the data encrypted in the SVR. But all the data is still uploaded to the cloud. So if there's a problem with the SVR encoding, the BIP 38 password generation etc the data is still exploited
Not only do you have to care, everyone you talk to has to do the same thing, because if your counterparty has their key in the cloud, the conversation is at risk.
Regardless, the master key is never uploaded
All the bits to reconstruct the master key minus the pin code are uploaded. So it's equivalent to uploading to the cloud The master key itself.
Very few people are using BIP 38 level passwords. So the vast majority of people have their key constructively uploaded fully in the cloud