Arctica Instructions

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Changelog:

v1.1 - July 6th, 2022:     Initial Release

Arctica Key Generation Process:

1. You use a new laptop for the Online Node (Dumb Node), which starts syncing and stays syncing - there is no private key info on this, or public key info, so an Adversary can’t steal bitcoin, or see your transactions and balance. The fact that it stays synced makes spending faster when you need to
2. You have 7 SD Cards. Two are near your home (Your ‘Attic’ Key, and your ‘Bank Safe’ Key - see pg 8 in Sketch). The other’s are kept off site.
3. For Key Generation, the Online Dumb Node generates these 2 Keys (The Attic Key and Bank Safe Key).
4. Five, new Offline Laptops generate the remaining 5 Keys for the total of 7
5. When I say generate ‘Keys’ that means generate Key data. You generate Key Data once on a SD Card, where an Operating System (OS) is also installed, and Bitcoin Core is also installed. This is so the SD Card is made bootable, so that in the future all you need to do is insert the SD Card into an offline laptop, and the OS and software (Bitcoin Core) is already installed with the Key Data on the same hardware (the SD Card), so signing is made very easy. You don’t have to reinstall an OS and Bitcoin Core every time you want to spend Bitcoin because of this. The Key Data is also copied onto a CD, for an extra backup
6. So you have 7 Packet Pairs - 7 SD Cards (with the OS, Bitcoin Core, and Key Data), and 7 CDs (with just the Private Key Data). The SD Cards/CDs pairs are split into 7 envelopes and distributed geographically, as described on page 8 of the Arctica Sketch
7. Destroy all Laptops except for the Online Dumb Node that always stays syncing Arctica 

Spend Process:

1. In 4 years, when you want to Spend, you do the following:
2. To create the spending request, one of the two ‘near home’ SD Cards (Attic or Bank Safe) needs to be placed into the Online Node and booted up (because the spending request needs to be started from something that has access to the blockchain) (the process can’t be entirely offline)
3. You sign in with your Node Pin. This contacts the BPS Servers, and receives the 4 Reading Keys from them. Those 4 Reading Keys, plus the 1 Reading Key from the SD Key booted from, equals the 5 Reading Keys needed to unlock the encrypted partition of the SD Card.
4. You can now create the Spending Request (Send $10,000 to Mom), and make the 1st Signature.
5. Now you go get the other 4 signatures, for the 5 out of 7
6. For your second signature, you put the second of the two SD Cards near your home (Attic Key or Bank Safe Key), into the Online Node, and sign the Partially Signed Bitcoin Transaction (PSBT) a second time.
7. For the other 3 signatures (you need 5 out of 7 signatures), you are going to transfer the PSBT to the Coordinator laptop via a QR Code (the Coordinator Laptop will be a freshly purchased offline laptop).
8. Note: During this process, whenever you transfer a QR Code, rather than going from Laptop A->Laptop B immediately, you transfer from Laptop A→ QR Confirm Laptop, and see if the QR Data is Correct (Does it say ‘Transfer $10,000 to Mom’ or ‘Transfer $100,000’ to M0M’?). If it says the correct data, then make sure the QR Code has not changed after scanning (look at it visually), and transfer it from Laptop A->Laptop B).  QR Confirm Laptop should also be a freshly purchased offline Laptop.
9. So the Coordinator has the PSBT that has been Signed by 2 Signatures. Buy another new laptop, titled Offline Signer Laptop 1, and take that, along with the Coordinator, to SD Card 3 (Note: you have 7 SD Cards distributed geographically. You need 5 to sign. I am not saying that this is SD Card Location 3, but that this is the 3rd SD Card you are choosing to sign with).
10. Boot SD Card 3 into Offline Laptop 1. Transfer the transaction from the Coordinator Laptop to the Offline Laptop 1, confirm the transaction, sign the transaction a third time, then transfer the transaction back to the Coordinator. Destroy the Offline Laptop, and return SD Card 3 to its hiding place.
11. Purchase Offline Laptop 2. Take this laptop, along with Coordinator Laptop, to SD Card 4. Boot SD Card 4 into Offline Laptop 2. Transfer the transaction from the Coordinator Laptop to the Offline Laptop 2, confirm the transaction, sign the transaction a fourth time, then transfer the transaction back to the Coordinator. Destroy the Offline Laptop, and return SD Card 4 back to its hiding place.
12. Purchase Offline Laptop 3. Take this laptop, along with Coordinator Laptop, to SD Card 5. Boot SD Card 5 into Offline Laptop 3. Transfer the transaction from the Coordinator laptop to the Offline Laptop 3, confirm the transaction, sign the transaction a fifth time, then transfer the transaction back to the Coordinator. Destroy the Offline Laptop, and return SD Card 5 back to its hiding place.
13. The Coordinator now has a fully signed transaction
14. The reason why the Coordinator is taken from SD Card to SD Card, is so that 2 Keys are not in one location at a time.
15. Transfer the fully signed transaction from the Coordinator, to the Online Dumb Node, via QR Code.
16. You can now immediately broadcast the transaction, because the Node is always syncing.
17. Destroy all Laptops, except the Online Dumb Node. (Coordinator and QR Confirm should be the only Laptops Remaining)
18. All Laptops during this process should be running Ubuntu and be single purpose (should only be used for purposes detailed in this guide, not for checking email, etc.