With the Jade wallet specifically, if used as described, it will only store the Multisig Wallet info (this is the same info that's in the Output Descriptor information / PDF file). That is, it stores the xPub's of the 5 separate private keys and some other bits of info that describes how the wallet is setup. If you don't want it to store this info you can factory reset it each time rather than just "turning it off". Just a trade off in ease of use vs security.
If the hardware wallet is damaged or dies, then it's no issue. Just buy a new one and scan in one of the 5 Output Descriptor / PDF files and this will restore the multisig wallet info in seconds. From there you just use it as per usual.
If the hardware wallet is stolen, then it's the same as if the attacker has access to one of your Output Descriptor / PDF files. They will be able to SEE your wallet, but NOT spend any of your funds (as they have none of the private keys to sign).
I have a Jade setup so that it is wiped on power off (as per the article). I am not worried about it getting stolen and I can see how a new Jade would not know the difference. Isn't the original Jade linked with the Sparrow wallet? If so, how does that get reset? Is that what the Output Descriptor PDF is for?
As far as we know, there's no connectivity between Sparrow wallet and the Jade, given it's setup in air gapped mode. So there's no resetting or anything needed at all. It knows that the hardware wallet is a "Jade" but that's it. No unique ID's or anything for that specific piece of hardware. All it cares about is that whatever hardware wallet it is, it's got the private key and can thus partially sign transactions.
So you'd just turn on the brand new Jade (or Foundation Passport or COLDCARD Mk4 or any other standard hardware wallet) and import the Multisig Wallet Output Descriptor details
What steps must be taken if the hardware wallet is lost or damaged?
With the Jade wallet specifically, if used as described, it will only store the Multisig Wallet info (this is the same info that's in the Output Descriptor information / PDF file). That is, it stores the xPub's of the 5 separate private keys and some other bits of info that describes how the wallet is setup. If you don't want it to store this info you can factory reset it each time rather than just "turning it off". Just a trade off in ease of use vs security.
If the hardware wallet is damaged or dies, then it's no issue. Just buy a new one and scan in one of the 5 Output Descriptor / PDF files and this will restore the multisig wallet info in seconds. From there you just use it as per usual.
If the hardware wallet is stolen, then it's the same as if the attacker has access to one of your Output Descriptor / PDF files. They will be able to SEE your wallet, but NOT spend any of your funds (as they have none of the private keys to sign).
I have a Jade setup so that it is wiped on power off (as per the article). I am not worried about it getting stolen and I can see how a new Jade would not know the difference. Isn't the original Jade linked with the Sparrow wallet? If so, how does that get reset? Is that what the Output Descriptor PDF is for?
As far as we know, there's no connectivity between Sparrow wallet and the Jade, given it's setup in air gapped mode. So there's no resetting or anything needed at all. It knows that the hardware wallet is a "Jade" but that's it. No unique ID's or anything for that specific piece of hardware. All it cares about is that whatever hardware wallet it is, it's got the private key and can thus partially sign transactions.
So you'd just turn on the brand new Jade (or Foundation Passport or COLDCARD Mk4 or any other standard hardware wallet) and import the Multisig Wallet Output Descriptor details