4 major misconceptions about the storage of cryptocurrencies. Version CEO of Coinbase
Source:
Co-Founder and CEO of the American crypto currency exchange Coinbase Brian Armstrong decided to debunk four of the most common misconceptions about custody solutions for cryptocurrencies. His article was in the column of The Ledger of Fortune magazine.
Cold storage involves the storage of cryptocurrency and private keys in offline mode and thereby protects them from hacker attacks. Hot storage refers to storage of crypto-currencies on the device with an active Internet connection.
First argument Armstrong in favor of «hot» storage is the need to have quick and direct access to cryptocurrencies, when it is necessary to make any transaction. He notes that some platforms allow users to conduct off-exchange trading with the use of delayed calculation. That is, the funds remain in cold storage until just before execution of the transaction.
Not long ago there appeared information that the blockchain company BitGo, in cooperation with the platform for OTC trading in Bitcoin Genesis Global Trading provides the same opportunity to sell cryptocurrency without having to withdraw from cold storage.
the Second argument was made in favour of crypto-currencies based on PoS. As he notes, participate in the PoS network and profit with the share does not necessarily imply that the coins should be stored in a hot wallet.
The CEO gives the example of cryptoprocta , which allows token holders to delegate their share of so-called «Baker». He holds a small part of the funds for a hot repository, which allows to distribute the rewards, but the client tools are securely stored on offline storage.
third, Armstrong explains the relationship between the holders of one key and whether the storage of hot or cold. According to him, the creation of custodial decisions with multiple keys would be a more reliable measure. Regardless of whether funds are kept offline or on the hot wallet.
In conclusion he mentions hardware security modules. According to Armstrong, they are on a level of reliability close to cold storage, and can certainly give the benefit of the custodian of the architecture as a whole. However, they can not be compared.
Any hot storage can be modified so that funds will be kept in complete safety. Isn't that right? Personally, I prefer to keep a certain amount of hot wallets. I'd like to risk all the savings while these points are not worked out? Rather no than Yes.
More data to search for .
Recommended
the long-awaited summer. Niche cryptocurrency supported the event and gave unusually hot week. During the last seven days, we learned about the new line of graphics cards from AMD, the mining in TON and hard forks . In addition dealt with the profita...
Co-owner Bitcoin.org Coinbase Pro ridiculed and called a stock exchange Scam
co-Owner Bitcoin.org and most popular forum about cryptocurrency Bitcointalk.org Cobra called Coinbase Scam Pro trading platform American crypto currency exchange Coinbase. In his tweet he wrote «if you read Coinbase Pro backwards, get the word ...
Rally Bitcoin — deception. Well-known economist advises to invest in gold
Director of Euro Pacific Asset Peter Schiff does not see anything supernatural in growth . Recall that the main cryptocurrency has already risen by 179 percent since the beginning of 2019 and is now trading at the level of $ 8540. According to Schiff...
Related News
The Ethereum is a cryptocurrency Scam. A new report Chainalysis
When people learned how to create a new cryptocurrency and began to build their infrastructure like marketplaces, in the field began to appear and fraud. According to blockchain auditor Chainalysis for the past two years, fraud in...
VEB and the Grozny mayor's office transferred the housing sector on the blockchain
In February, the first Deputy Chairman of VTB Olga Dergunova positively the prospects of the blockchain. According to her, the technology will improve the speed of transactions and security standards. To move from words to action ...
Hacker 1337. How to hack Etherscan not to cause any harm
Monday on the website Etherscan.io appeared a pop-up message with the numbers 1337. The visitors began to panic and spread rumors about hacking Explorer. really hacked, but the damage from a hacker attack was zero. About it writes...
By the end of the year Bitcoin will rise to $ 5,000, and then to a million. An expert forecast
Vice-President office of the blockchain and the digital currencies in IBM Jesse Lund expects growth of cost up to a million dollars. Lund announced this prognosis during the interview with representatives of the platform Finder.co...
TON network will launch in October 2019. Otherwise, the contracts for the tokens can cancel
contracts for the purchase of tokens Gram from Telegram can be terminated if the network is Open Network Telegram TON will not run until 31 October 2019. In a Cointelegraph was a document evidencing the respective terms of the con...
JPMorgan: the fair price of Bitcoin is $ 2,400. Why miners don't agree?
Representatives of JPMorgan provoked the miners of cryptocurrencies, stating on «fair price» the first cryptocurrency . This estimate is presumably based on marginal cost . However, many do not agree that the coin price ...
The representative Bitcoin SV: the entire Ethereum platform based on same
Calvin Eyre is one of the main supporters ever since in November 2018. He continues his attacks on the rest of the platform. This time the owner was generous and called it Scam. Tweet air referred to in relation to the key charact...
Ripple can not escape from the horizontal channel. Will there be growth?
From the point of view of fundamental analysis have happened a lot of good events. The CEO of SBI Holdings cryptocurrency leading asset industry, and the company Instimatch Global announced support for R3 Corda Settler, decentrali...
A trader who has shorted the Ethereum at $ 700, does not believe in the growth of cryptocurrencies
If you find it difficult to resist from the opening long after the sharp rise of the stock market, listen to the opinion of the co-founder of hedge Fund Capital Tetras. Alex Annaberg believes that hopes for the continued growth is...
CME Group: the number of futures contracts on the Bitcoin hits record
has not Yet completed the second month in 2019, and CME Group has reported a record daily amount . It is reported by the company The Block that has received an email from a representative of the platform. According to its represen...
How hackers hack kriptopolis on the exchanges and steal our money. The most popular ways
Kriptonyte attracts millions of customers and thousands of scams. Unregulated «Wild West» this modern financial sector includes the crazy volatility and round the clock trading and anonymous transactions, hidden from gov...
Litecoin has increased by 120 percent since mid-December. The reason for the jump?
the Fifth capitalization, the cryptocurrency has shown very good results in February — only for the month increased by nearly 59 percent. It is noteworthy that LTC seriously bypassed in terms of profitability — that rose by only 1...
Bitcoin is the most compelling asset of our time. Four arguments in favor of the approval
Now is the time to buy is now, this thesis was picked up by Spencer Bogart, the partner of Blockchain Capital. During his recent interview with Bloomberg Bogart called the main cryptocurrency «one of the most compelling asset...
Samsung showed the Galaxy S10. The flagship got a built-in storage for private keys
looks Like the insider on the new flagship of Samsung was indeed true — the new Galaxy S10 supplied built-in crypto. This was reported by representatives of the company in a press release. The official presentation of the new line...
Former CEO of the infamous exchange Mt. Gox mark Karpeles in an interview with WhatBitcoinDid told about the problem areas of the trading platform, the rehabilitation plans of the clients and . Mt. Gox once took a leading position...
Ripple — project number one in the whole stock market. The opinion of the head of SBI Holdings
Soon kriptonyte can break out the real war between and . At least, so says the General Director of SBI Holdings Yoshitaka, Kitao. It is noteworthy that Kitao already defined «the winner» in battle — the undisputed leader...
Bitcoin failed to consolidate above $ 4,000. What's next?
Price failed to stay above at the level of $ 4,000, therefore, the cryptocurrency now has a chance to fall back to the nearest support. A good basis for a rebound of the asset can be a line of 3800 dollars. After that, Bitcoin is ...
Sparkpool froze a mysterious payment of 2100 ETH mined block. What's the matter?
Mining pool Sparkpool reported that temporarily freezes the payment size in 2100 , which he received for the extracted block. At the moment the pool is waiting for messages from the sender to understand the situation. The strange ...
The number of short positions on Bitcoin fell to a six-month low. The bears leave?
Today, the total short positions declined to the lowest in the last six months. Last time such situation was observed on the market in November 2018. Now the sum of the shorts does not exceed 18 888 BTC is the lowest reading since...
the founder of the Tetras Capital Alex Sunnarborg said that has not yet reached the bottom. According to the Manager of a hedge Fund, cryptonote needs a comprehensive cleaning. This would get rid of the «bad actors» and ...
Comments (0)
This article has no comment, be the first!