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I've been setting up monero-wallet-rpc and noticed the --trusted-daemon flag. I understand that it is used to indicate that the connected daemon is trusted, but I’m not entirely sure which commands specifically require this flag to ensure proper functioning and security.

I’ve already reviewed the official Monero documentation, but I couldn’t find detailed information on which specific commands or scenarios necessitate using a trusted daemon.

Could someone please clarify:

Which specific monero-wallet-rpc commands or operations require a trusted daemon? What are the security and privacy risks of using an untrusted daemon for sensitive operations like transfers? Are there any best practices or recommendations on when to use this flag? Any further explanations or guidance would be greatly appreciated!

Bheid
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1 Answers1

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I will make some guesses so some of the following info might not be true.

In my monero-gui-wallet-guide.pdf following is said "Trusted Daemon:By default, data requests to remote nodes are obfuscated, and this process requires more resources. If your remote node is under your control (i.e. a dedicated server of your own) you can mark it trusted so that data requests will not be obfuscated anymore (just like a local node)."

So use it when connecting to a trusted node. Why? This node will know your real input. When creating output(sending money) you need to use/reference your inputs(money you received). But to give you extra protection when you make a transaction Monero mixes your inputs (outputs you received) with other "random" inputs(outputs other people received) to create your new output(transaction/you sending money to someone).

The following reddit post tells us a lot how you get info about this "random" inputs needed to create your own output. https://www.reddit.com/r/Monero/comments/84810s/psa_tracing_attacks_could_be_possible_when_using/

You already have some info(IDs) needed to ask someone with whole blockchain(remote node) to give you all the info about others inputs. Because this is not a trusted remote node we ask for 57(smaller number would work) "random" inputs and one that is ours(we assume we only need one of our inputs here). We already know all info needed for our own input(unlike random ones) but ask for it anyway so the remote node would not know which one is really ours. How would a remote node know? Our output is made up of our input and other random inputs and once we send this output to blockchain remote node will see it. Remote node knows what outputs we requested and only our own would stand out as the one remote node did not send to us.

So this is the obfuscation monero-gui-wallet-guide.pdf is talking about(I guess) and by trusting the remote node we generate less traffic(we ask for minimal need info to create output) because we know it won't try determine and log our real input.

user18165
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