Next Generation ‘Hardware 2.0 Wallet’ is Eradicating Storage to Improve Security
From initial coin offerings to cryptojackers, security is a big issue when it comes to cryptocurrency. Just recently a whopping $16 million in Ethereum and ERC20 was reported stolen from a New Zealand exchange.
Human error can also pose a serious threat to the safety of cryptocurrency. Perhaps it is something that not many would be proud to admit, but 2017 data suggests that there are four million Bitcoins in total lost in the wild.
That’s around $13.6 billion worth of tokens that remain unclaimed or sit dormant in long-forgotten accounts.
If you have ever had a cryptocurrency wallet, you are probably familiar with the long alphanumeric strings or “keys” that are used to identify and log in these accounts.
A Private key allows users full control over their account even without possession of its “public” equivalent. If lost, the account is nigh on impossible to access to the “master seed.”
To produce what might be the most unique feature of its hardware-wallet technology, Bitfi has claimed to have found a way to bypass these security issues altogether by eliminating private key storage on their wallets entirely.
This means that a users’ funds are impervious to unwarranted access: even in case of unwarranted access to the hardware wallet device itself – a hacker would not be able to access any data that could be used in any way to threaten the safety of user funds.
This includes a physical seizure or theft of the device since it contains no storage of private keys so extraction is impossible.
Bitfi offers a comprehensive security solution for its hardware wallet and the company speaks for itself when it comes to its technology.
Instead of requiring the account’s private encryption keys to be stored inside the wallet (like all hardware devices at the moment), the Bitfi solution calculates private keys using a deterministic algorithm which is submitted and confirmed at the exact moment of a transaction.
The company also offers repeated security updates for both the back-end as well as the physical device, all downloaded directly from the node. No need to download extra apps or software, which lowers the barrier to entry for less tech-savvy users whilst minimizing the risk of downloading potentially unwanted programs or malware.
The Big Picture
Cryptography is a core (and eponymous) tenet of cryptocurrency, featuring prominently in Bitcoin and prophesied in its whitepaper by creator Satoshi Nakamoto. Bitfi is arguably helping to progress the security ideals held by Mr. Nakamoto, whilst also addressing key usability concerns. In addition, Bitcoin was intended to be an unseizable asset, therefore, Bitfi is congruent to this ideal by also making the unseizable wallet. Company representatives note, that this is the first and only wallet that does not store private keys.
According to the team, the technology behind BitFi works in a completely original way compared to other wallets, and the user interface is no different in this regard. Company representatives highlight ease-of-use and intuitiveness as being key requirements of customer solutions, for achieving the mass adoption of digital assets.
In news: A new model called “DMA-2” coming out imminently and available for sale now. This new model offers several important new features and upgrades. Pre-existing customers are offered the opportunity to update the firmware in their current devices to match the update.
This is in addition to a continuous improvement programme, which is comprised of various bug bounties and ongoing addition of new assets and currencies.