A company called Vault12 has launched its new password security solution for cryptocurrency assets. Vault12 is an application that allows users to use their trusted friends and family members to help protect their assets. According to the creators of the project, the new application exploits the Shamir's Secret Sharing cryptographic algorithm, which makes it possible to split the keys in a distributed way.
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Distribution of digital asset seeds with the help of Vault12 and Shamir's secret sharing
Vault12 believes that it is absolutely necessary to protect cryptographic assets, as the blockchain-based innovation continues to grow exponentially. Since the birth of Bitcoin and many other digital currencies, many applications and devices, such as hardware portfolios, have been created to protect cryptos. The new Vault12 product allows individuals to leverage trusted family members and friends to help secure digital currencies. In addition, tutors are rewarded by the Ethereum (ETH) for protecting assets, thus giving the trusted network of friends an incentive to be a valuable guardian. The project was officially launched at San Francisco Blockchain Week and is supported by investors such as Naval Ravikant, True Ventures, Data Collective and Winklevoss Capital.
The Vault12 white paper explains that, when it comes to valuable digital assets, an "unprecedented level of threat" is looming for people in need of a solid security solution. "To protect these assets, we need a new cryptographic security platform – a platform that does not allow centralized security in one place, with one person, on a single device, or in a single organization. ", Details the research paper. To further enhance the security of digital currencies, the company has created a decentralized storage system for digital assets via a hierarchical Shamir's Secret Sharing (SSS) system. The SSS infrastructure is a well-known algorithm in cryptography designed by the cryptographer and mathematician Adi Shamir. The secret (security key) is essentially shared in the Vault12 system distributed between 3 to 5 trusted contacts, giving each participant their own part.
Vault12 hopes to bridge the gap between the digital currency economy and unresolved security issues
Vault12 allows any owner to set up a safe with his friends and family. Guards can still be recruited on the owner's home network at any time. But high net worth individuals who need increased security can opt for a professional depository service (PCS). However, registration for this service requires much more effort and additional safeguards, such as verification of the identity of the owner with a government-issued ID card. "One of the unresolved challenges for the massive adoption of cryptocurrency and the blockchain economy is the challenge and the burden associated with securing cryptographic assets," said Max Skibinksy. , co-founder and CEO of Vault12. Skibinksy adds:
Previously, to keep our digital money safe, we had to keep our extremely valuable cryptographic backups on pieces of paper and store them in traditional banks. It was ironic. We have designed Vault12 for it to be an innovative and practical solution that replaces this tedious process.
Configuring the Vault12 application is a fairly simple process, but you must choose from 3 to 5 trusted people to secure your assets. This part of the process may take longer, but setting up the safe after this decision does not take too much time. The app works for Android and iOS devices, and once opened, it immediately asks you if you want to set up a vault, and then asks you for permission to access your phone's contacts. The company claims that the information is not stored on the company's server and you can skip this part and manually add each contact individually. Once you've decided to share your contacts with the app, the platform will ask you for your name so that your guardians can identify you and help you protect your storage location.
The platform then asks you to choose the number of guards between 3 to 5 contacts and the more you use guards, the more the safe will be secure. Once you have registered the security level (number of guards), you can not change it unless you start a new vault. If you chose to manually add contacts, you can send them an invitation or scan their device if they already have Vault12 installed. To add digital resources to the vault, simply upload an image of the source phrase or use a file containing the seed. The app will inform you of the number of people keeping the seeds kept in the Vault12 system.
Overall, the Vault12 method is a new and exciting method of protecting digital resources, but some people may have difficulty meeting certain requirements, such as sharing their name, phone number, and contacts. It is also possible that users do not trust the download part in which the user must upload a file or image containing a key phrase protecting digital assets. However, the key elements of the project are open source and Vault12 users can take a look at the infrastructure of the ZAX relay network and the distribution of fragment operation. "In the future, other elements of the platform will be released as open-source libraries," says the Vault website12.
What do you think about the Vault12 Digital Currency Storage System? Would you use an app like this, or are there concepts of the security approach that you do not like? Tell us what you think about this topic in the comments section below.
Warning: Editorials step by step are intended for information purposes only. There are many security risks and methods that ultimately result from user decisions. Different stages are mentioned in journals and guides and some of them are optional. Neither Bitcoin.com nor the author is responsible for losses, errors, skipped steps or security measures that have not been taken, as the ultimate decision-making process for this purpose rests with the reader. This editorial is not a recommendation or endorsement by Bitcoin.com or the author of any products, applications, software, services or companies mentioned in this article.
Image credits: Shutterstock, Vault12 and Pixabay.
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