So you’re a newly minted bitcoin multi-millionaire who’s now looking for secure your wealth.
Or you’re a novice in this fascinating world of cryptocurrency who’s looking to invest but would like to ensure your private key security before making your first investment.
Or a cryptocurrency wallet or exchange responsible for securely managing the private keys of thousands and millions of your users.
Then you must realise that private key security is the most crucial aspect of public key cryptosystems.
Most newcomers that buy cryptocurrency from an exchange like Coinbase or Mycelium leave their holdings in the software wallets provided by such exchanges.
Types of software wallets
There are typically three kinds of software wallets: Desktop, online and Mobile wallets.
Desktop wallets: These wallets could be downloaded and installed on your laptops or personal computer. They’re easy to use and no third party servers are used to store private keys. However, the private key is vulnerable when these are connected to the internet or in case of malware infection or hard-drive failure.
Online Wallets: Such wallets store the private keys online which could be accessed from anyplace. This makes them very convenient and fast yet are extremely vulnerable to malicious malware, hacking, and cyber attacks.
Mobile Wallets: These are provided as apps on mobile phones and are optimised for retail transactions. The keys are stored on the mobile device which means that you lose your coins when you lose your phone. They are also susceptible to hacking and malware attacks.
Hardware wallets are comparatively more secure than software wallets
In general, default software wallets provided by exchanges are typically insecure and users should consider “cold” storage in the form of hardware devices. The frenzied growth of the cryptocurrency market in the last few years has led to the popularity of hardware wallets like Trezor. Such hardware wallets are typically designed like USB devices- could be plugged into the computer while making a transaction. They are comparatively more secure than software wallets.
Use Split Key to take control of security of your private keys
At AppsPicket, we have been working to create an extremely secure yet usable solution for private key security. AppsPicket SplitKey technology utilises latest advances in distributed cryptography to split your private key into multiple key-shares. These key-shares could then be stored at multiple places and combined to regenerate your private key.
At the heart of our SplitKey technology lies a secret-sharing protocol to split the private key into multiple key shares that could be stored in a distributed manner across multiple user devices. Each split does not reveal any information about the private key. While authenticating and making a cryptocurrency transaction, the private key is reconstructed and the user proves possession of the private key using a Zero-Knowledge protocol.
Please get in touch with us if you’re looking for a usable solution for ensuring private key security and ask for references from our existing customers using Split Key to secure their cryptocurrency.