The private key is handed over to relatives and friends for safekeeping. Are you assured of such a deposit?

The San Francisco Blockchain Week witnessed the release of a number of new products, and Vault12 is one of them. This is a company that builds a “personal cryptocurrency security” solution that is supported by numerous investors, including Naval Ravikant, True Ventures and Winklevoss Capital.

Bitcoin

The company claims to be "the first personal cryptocurrency security solution that provides distributed, decentralized encrypted asset backups for individual users." According to a press release released today, Vault12 customers will not store encrypted assets in exchanges or cryptocurrency wallets, but instead use a decentralized storage network to store their assets, using Shamir's Secret Sharing algorithm and advanced Proprietary technology" for encryption.

Vault12 users can then recruit a “guardian” team, a group of trusted partners to watch their funds and ensure that only the original owner can get the funds. As a reward, the Guardian can get Ethereum.

This idea clearly caught the attention of AngelList founder Ravikant and the Winklevoss brothers.

Cameron Winklevoss stated in the statement:

“Protecting money is a necessary condition for a cryptoeconomic boom. Vault12's distributed, decentralized, and serverless security approach helps reduce the frictions that can be encountered when storing encrypted assets.”

Today, most cryptocurrency users place their digital assets in wallets or centralized exchanges. However, it is impossible to completely protect the security of funds, and it may still be attacked by hackers or cybers. A cryptocurrency wallet usually requires a private key so that users can get funding. These keys may be forgotten or lost, causing the funds themselves to be "lost" due to inaccessibility of the holder.

Max Skibinksy, co-founder and CEO of Vault12, explained in his statement:

“In the past, in order to protect our digital currency security, we had to store valuable password backups and papers in traditional banks. This is ironic. We set up Vault12 to be an innovative and convenient solution to replace this cumbersome process. ""

By using the Shamir's Secret Sharing algorithm, the goal of Vault 12 is to ensure that the private key is kept through a trusted network of personal choice. This network can be made up of friends, family members or other close partners.

It is reported that this process of Secret Sharing is achieved by dividing the "secret" (usually the encrypted key) into different parts. Each member of the network holds a portion of the key to ensure that the complete key is not held by one person, thereby preventing hacking or theft. Users must request their network approval to access protected assets.

Let your family and friends keep your private key for you. Do you think it is reliable?

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Coinbase and SEC Lawyers Debate Crypto Transactions in Court: Potential Impact on the Future of Cryptocurrency Regulation in the US

The SEC lawyers are actively debating the classification of cryptocurrency token transactions on exchanges as investm...

Blockchain

The Sandbox and NuggetRush: A Tale of Upgrades and Rushing Nuggets

Fashionistas, are you ready for the latest updates on The Sandbox (SAND)? The popular NFT platform is launching a new...

Blockchain

JPMorgan CEO Threatens Crypto: A Criminal’s Best Friend or Innovation’s Gateway?

In a recent statement, Dimon expressed his belief that cryptocurrency companies should undergo the same AML regulatio...

Blockchain

Commerzbank: Leading the Way in Crypto Custody Services

Fashionista, get excited because Germany's top bank, Commerzbank, has just received a crypto custody license from the...

Blockchain

When Flare and Bloxico Shake Hands Unleashing Unbeatable Blockchain Reputation Scores!

Flare Network and Bloxico have introduced Reputation scores to improve trust in the oracle's expanding ecosystem.

Bitcoin

15 Years of Bitcoin: Unleashing the Crypto Revolution

Fifteen years after its debut, we take a look at the current standing of Bitcoin and how it has evolved since Satoshi...