Crypto currencies are currently experiencing a boom. Thanks to the blockchain technology used, they offer the advantage that transactions can be viewed by anyone who belongs to the corresponding distributed system. At the same time, however, transaction partners remain anonymous. Moreover, the blockchain cannot be manipulated unnoticed due to its inherent structure.
Unfortunately, news often report that crypto assets worth millions of dollars have been lost or stolen. However, this is not because of the blockchain itself, and it is avoidable: First, providers of crypto trading platforms must offer secure storage of crypto keys, and second, crypto merchants should ensure to select only such secured platforms for their transactions with crypto currencies. Securosys offers a solution at hand and furthermore is in the process of developing additional functionality according to market requirements.
An unsafe link in crypto assets: The wallet
The most insecure link in the digital-currency system is the wallet, which is located on the application level. A crypto-currency owner uses this application to manage his crypto assets. It contains the private key corresponding to the special crypto object. For the wallet to be secure, the keys must be stored in a secure location.
Cold Storage - but a secure one, please!
Storing the private key on a PC is completely unsafe, as there are already countless methods for infiltrating PCs. Many crypto-asset owners therefore prefer "cold storage": a storage method in which the carrier of the crypto key is not directly connected to the Internet. A piece of paper or a USB stick are the two most common forms of cold storage. It is obvious that these methods are unsafe and do not scale well: Paper and USB sticks can easily be lost or stolen. Moreover, when printing on paper, the printer also keeps a copy of the document in its memory; another location that can be hacked.
The solution is that the wallet provider maintains a dedicated crypto keystore based on a Hardware Security Module (HSM) for his customers. Large crypto investors should either possess their own HSM crypto key storage or use an HSM service to secure their crypto assets.
At Securosys, we focus on securing crypto assets and developing new solutions to meet market needs. For this purpose, we closely work together with trustworthy and innovative partners. One of our functional extensions solves the problems concerning digital signatures: It can be ensured that not just a single authorized person alone is going to use the private key relating to a crypto-asset. This is made possible by a special procedure requiring for each action at least two concurrent authorizations out of a whole group, which is called multi-signature, or “multisig” for short. Additional functions for crypto assets, crypto currencies and blockchain are in development.
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A piece of paper, a USB key - is this really the way I should keep my crypto assets?