How to implement cold storage payments using bitcoind

Question

I wonder what APIs of bitcoind I can use to sign a transaction without actually publishing it. I read that createrawtransaction (in conjunction with signrawtransaction) is a bit risky and for sure poorly documented. Are there any alternatives?

Answer 1

Using bitcoind, sendrawtransaction is one of the steps normally performed. So to not broadcast, simply omit that command.

For an alternative, you might want to look at SX>

SX is a set of modular Bitcoin commandline utilities that admin types can engage with Bitcoin functionality without having to write code.

• http://sx.dyne.org
• http://bitcoinmagazine.com/6234/what-libbitcoin-and-sx-are-and-why-they-matter/

Using the Mycelium mobile app has to be the easiest method to spend funds from a paper wallet. From the app, select Cold Storage. Then scan the private key from the wallet. Then scan the QR code for the Bitcoin address to send the funds to.