Step 1

Preheat oven to 400°F. Line a baking sheet with aluminum foil and place bacon on baking sheet. Transfer to oven until crisp and brown, about 30 minutes. Remove bacon to a paper-towel lined plate, and carefully use the aluminum foil to transfer the bacon fat to a a large skillet.

Step 2

Place skillet with bacon fat over medium heat. When hot, add onions and salt to the bacon fat, stirring constantly for 5 minutes. Reduce the heat to medium-low and cook until caramelized, stirring regularly to prevent onion from burning and sticking to the bottom of the pan, 25 to 30 minutes. Add garlic and cook for 1 minute. Remove from heat, add balsamic vinegar, and set aside.

Step 3

In a mixing bowl, stir together sour cream, mayonnaise, pepper, smoked paprika, and chives. Chop bacon and add to mixture, reserving some bacon bits for garnish. Add caramelized onions to mixture and stir to combine. Transfer to a serving bowl, top with reserved bacon bits and additional chives. Serve with crackers or chips.