At Magic Eden, we prioritize the safety, security, and ease of access for all participants using our Bitcoin Ordinals platform. To achieve these objectives, we rely on Partially Signed Bitcoin Transactions (PSBT) and their secure management of signatures. In this article, we will delve into how PSBT works, its safety features, and its ability to enable instant price changes and cancellations, even for users with limited knowledge of Bitcoin.
Protecting Your Wallet and Private Keys
At Magic Eden, we respect your privacy and take your security seriously. We do not have access to your wallet or private keys. Instead, our platform directly interacts with your Bitcoin wallets, allowing them to guide you in signing PSBT transactions securely.
Confidentiality of Partial Signatures
As a seller, you can rest assured that your partial signatures for listings remain confidential and are never exposed to the public. To ensure utmost security for your transactions and personal information, we have open-sourced and published msigner, a signing tool for PSBT, available at https://github.com/magiceden-oss/msigner. There is no need to reveal partial signatures to public users or even the buyer of the Digital Artifact. Additionally, any transfer or listing change automatically deletes and removes previous seller listing signatures.
Robust Encryption and Security Measures
To reinforce the safety of your partial signatures, we employ the NaCl (Networking and Cryptography Library) encryption system, which you can learn more about at https://nacl.cr.yp.to/. Furthermore, we utilize the AWS Key Management Service (KMS) to manage cryptographic keys and uphold stringent security standards. This powerful combination guarantees that your signature is protected by the highest standard of encryption management.
Role of the Buyer
As a buyer, your responsibility lies in signing the full transaction, encompassing all inputs and outputs presented. This ensures that you possess comprehensive knowledge of the transaction details and actively contribute to the overall security of the transaction process.
Accessing Open-Source Details
Invalidation of Old Listings
To address the need for invalidating previous listings, we are diligently developing an ordinal batch-transfer tool that performs on-chain invalidation. This tool is designed to be gas-efficient and allows you to transfer your ordinals (as UTXOs) to your wallet, effectively invalidating all previous off-chain listings at once. Stay tuned for updates on this exciting feature.
The Advantages of PSBT
In summary, PSBT proves to be a secure and efficient method for executing transactions in Bitcoin Ordinal platforms. By safeguarding the seller's partial signature and employing high-quality encryption, PSBT ensures that users can confidently engage in buying and selling Digital Artifacts. Furthermore, the transparent and open-source nature of the process facilitates ongoing improvements and user-friendly experiences, making PSBT an ideal solution for users of all experience levels.