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Project overview

A plain-English tour of how Distribrute moves from a locked wallet to distributed password search, verified recovery, and success-funded settlement.

Last reviewed Jul 22, 2026

The project in one minute

Distribrute helps owners search for a forgotten password to a supported encrypted crypto wallet. The expensive search is divided among independent compute operators, but those operators do not receive the complete wallet. They receive a wallet-specific safe test piece and one signed, bounded range of password candidates at a time.

A possible password is not treated as a completed recovery. It is checked against the strongest wallet evidence available, the wallet is opened in the selected custody workflow, spendable value is confirmed, and settlement must complete before any success-funded fee or operator reward exists.

END-TO-END FLOW One case, five stages
  1. 01

    Request and review

    Confirm the wallet format, ownership evidence, and a realistic password search.

  2. 02

    Prepare safely

    Keep the wallet in its custody boundary and derive a small, non-spendable test piece.

  3. 03

    Distribute the search

    Send signed, bounded password ranges—not the wallet—to approved operator devices.

  4. 04

    Confirm and recover

    Check a reported match against the real wallet before completing wallet-side recovery.

  5. 05

    Settle if funded

    Confirm spendable value and complete settlement before any success-funded reward exists.

Custody changes where the complete wallet lives and where final recovery happens. It does not change the limited work package sent to operators.

The search is targeted rather than arbitrary. What the owner remembers about the password is turned into explicit wordlists or masks, divided into auditable chunks, and signed before distribution. The operator agent checks those signatures and its approved recovery tool before doing any work.

One search, two custody modes

Both custody modes use the same operator-side idea: send the safe test piece and assigned candidates, not the complete wallet. They differ in where the wallet lives and where final confirmation happens.

Custodial recoveryNon-custodial recovery
Complete encrypted walletSent through secure intake and held inside Distribrute’s high-trust boundaryRemains on the owner’s computer
Safe test pieceCreated during secure intakeCreated locally with the customer wallet extractor or guided assistance
Operator work packageSafe test piece and signed candidate rangeSafe test piece and signed candidate range
Final wallet confirmationAgainst the securely stored walletAgainst the owner’s wallet during a guided session
Wallet-side recoveryCoordinated by DistribruteCompleted on the owner-controlled computer

Non-custodial means the wallet stays with the owner. It does not mean no trust is involved: a guided recovery still handles a reported password, and the owner’s computer becomes part of the security boundary. The detailed tradeoffs are covered in Custodial vs non-custodial.

The customer extractor has separate offline CLI and GUI interfaces for local wallet files. Its opt-in Blockchain.com GUID build contacts only blockchain.info to retrieve the owner’s encrypted backup and still requires the owner to hand off the resulting safe extract deliberately. The public recovery-request form does not accept an extract directly.

Who can see what

The system separates roles so the machines doing the bulk password search do not also receive the material needed to spend the wallet. That boundary has one important, explicit limit: an operator controls its own machine and can inspect every password candidate tested there, including the exact password if that machine finds it.

TRUST BOUNDARIES Who can see what
01
WALLET OWNER

Controls the recovery

Can access

  • The original wallet and recovery context
  • The final wallet-side recovery
  • The recovered value and destinations

In non-custodial recovery, the full wallet stays on the owner's computer. Custodial recovery sends the encrypted wallet through high-trust intake.

02
DISTRIBRUTE

Coordinates and verifies

Can access

  • Submitted case and ownership information
  • Safe test pieces and signed work
  • Reported candidates inside high-trust Verify

The fleet-facing coordinator cannot open sealed reports. It does not need the complete wallet; high-trust services receive only what the selected custody mode requires.

03
COMPUTE OPERATOR

Tests assigned passwords

Can access

  • The wallet-specific safe test piece
  • Its assigned candidate range
  • Every candidate tested locally, including a password it finds

No complete wallet, direct owner fields, balance, transaction history, or complete spendable key material is sent to the operator.

A safe test piece is non-spendable, not universally zero-knowledge. Some formats expose bounded fragments or metadata; each wallet-engine page documents the exact limit.

Sealing protects a reported candidate while it travels through the coordinator. It does not hide that candidate from the operator host where it was tested. The recovered password may contain personal information chosen by the owner, but without the complete wallet or complete spendable key material it does not by itself grant control of the funds. See the Trust model for the complete assumptions and limits.

When a recovery becomes payable

Password correctness and financial success are separate facts. Many encrypted wallet formats do not expose a dependable set of public addresses before decryption. The correct password can therefore open a wallet whose addresses have a zero balance, whose funds were already spent, or whose remaining value cannot support settlement.

SUCCESS CONDITIONS A match is the start, not the payout
01 · OPERATOR RESULT A possible password is reported

The operator controlling that device may already have inspected it locally.

02 · WALLET CONFIRMATION Does it hold up against the real wallet?
NOT CONFIRMED Search continues

A minimal check can be a false positive.

CONFIRMED Password recovered

The wallet can now be opened.

03 · FUNDING CHECK Does the unlocked wallet contain spendable value?
EMPTY OR UNSPENDABLE No funded settlement

The password can be correct while the operator reward is zero.

FUNDED Proceed to settlement

Value, destinations, fees, and eligibility are checked.

04 · COMPLETED SETTLEMENT Success is allocated
85%Wallet owner
10%Operator pool
5%Distribrute

No completed funded recovery and settlement means no success fee or operator payout.

Many wallet formats do not reveal a dependable address set before decryption. The balance may therefore remain unknown until after the password is recovered.

For a funded recovery that completes settlement, the owner receives 85% of recovered value, the signed operator pool receives 10%, and Distribrute receives 5%. The operator pool is not necessarily a winner-takes-all bounty: the current default gives half of the pool to the finder and divides the other half among eligible non-finding operators by verified work. Read Operator rewards and settlement for the conditions, audit rules, and current manual settlement boundary.

Supported wallets

Wallet familyCurrently reviewed encrypted formats
Bitcoin CoreSupported encrypted wallet.dat files
Blockchain.comSupported historical Blockchain.info and Blockchain.com backups
ElectrumLegacy v1/v2 and Electrum 2.8+ BIE1 wallet files
MultiBitClassic .key, Classic .wallet, and HD mbhd.wallet.aes backups

Exact compatibility is reviewed before a case is accepted. Unsupported formats, missing private-key material, partial seed phrases, and raw private-key discovery are outside the distributed recovery model. See What we cannot recover.

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