Store privateKey in encrypted stream

Question

I'm thinking about storing the created wallets privateKey in an encrypted stream only readable by the node. This stream could be subscripted from a backup-node. As a result the nodes gets more dynamic, backup of wallet.dat is not required anymore..

Any shortcomings of this ?

Answer 1

Sure, you can do this if you're confident in the encryption method you use. Of course, you still need a backup somewhere of the password to read that encrypted stream. So it might be easier to skip the extra step and just share a copy of the private key to the backup node directly, using dumpprivkey and importprivkey.