Security is everything in the world of finance. Keeping assets secure is what occupies most people’s minds when it comes to saving or investing. Whether a bolted safe or a smart wallet people have always needed to know that their assets are secure to be able to sleep at night.
How secure is private key encryption?
When it comes to storing cryptocurrency securely there are a few secure wallets available. But, up until now even the safest smart wallets were exposed to a single point of failure: the private key.
The private key is given to the user in the form of a seed phrase which is a list of words that store all the information needed to recover one’s cryptos. This key is full-proof only if it is not forgotten, lost or stolen. Human error can be costly with private keys.
What is the most secure wallet for Bitcoin and crypto?
There are three popular security solutions.
Multi-signature wallets. Multsig wallets require the involvement of at least two private keys to access funds. These two keys could belong to one user but are stored in different locations, or two different users. Multiple keys heighten the security of a user’s digital assets by requiring someone to have access to both keys to be able to access the user’s funds. However, the possibility of human error remains making this form of wallet not entirely secure.
Hardware security modules (HMS). Known as “cold wallets”, HMS are physical devices which contain the user's digital wallet and crypto assets. This can pose difficulties. For one, cold wallets are not “crypto-agile” which means they don’t update frequently to counter newfound security threats. To update such a wallet, you’ll have to wait for a new version of the device to be released. Additionally, HSMs don’t provide mechanisms that could detect private key misuse, with one misuse enough to lose all your digital assets. Besides, such devices can be physically stolen, broken or lost.
Multi-party computation (MPC). Pioneered by Curv, MPC technology does not require a private key to be created, so it cannot be compromised. As a result, single points of failure are eliminated and security is reaffirmed for app users.
MPC works by multiple parties jointly performing mathematical computations without one party ever revealing its secret to the others. Curv has pioneered the use of MPC protocols to create distributed shares (data that’s split into multiple encoded parts). Curv’s independent shares come together to compute a public key and wallet address, which can be used to deposit digital assets.
The most secure Bitcoin and crypto wallet
At SwissBorg, we chose to use MPC technology so the challenges associated with private keys will never be a concern for our growing user base thanks to Curv’s keyless approach.
In this way we have a secure, flexible and scalable system behind the Wealth App.
“Overall implementation of Curv’s MPC technology enables us to assure our community members that their investments are behind the highest grade security available on the market. As for our team at SwissBorg, we stand confident in Curv’s vast expertise in security and cryptography.”
- Nicolas Rémond, CTO at SwissBorg.
The security of our Wealth app users’ assets has always been a number one priority. It has become a significant differentiator for us in the ever growing crypto market.