Comment by @0xbaer • Hey

it's not a cold wallet if someone else has seen your private key! no one knows if the key was written somewhere down during production

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That's the cool thing about BIP-38; even if someone has seen your private key (let's say, for example, someone writes it down during production), they would still need your passphrase in order to transact on the account. Ballet uses 2FKG, which means that the two critical private key components (private key and passphrase) are generated in geographically segregated locations. For more information: https://www.ballet.com/2FKG-graphic/