by Changepond Posted on November 5, 2015
Currency is no more just a tangible asset that can be felt, seen or carried along inside the pocket. It is all digital, virtual & electronic.
Cold Storage Vaults for Digital Currencies
Currency is no more just a tangible asset that can be felt, seen or carried along inside the pocket. It is all digital, virtual & electronic. Next generation currencies are revolutionizing the need & purpose of money and encouraging people to take the online route for performing trade and payment transactions. Right from minting the currency to expensing it in the virtual market place, everything is digitized through the power of World Wide Web.
But, digital currencies are being strongly criticized because of the risks involved in authenticating & securing the currencies. One of the prime challenge faced by Digital currency brokers nowadays is to safeguard the digital currencies from cyber attacks. "Cold storage” is one of the nascent antidote to protect the cyber money from hackers and other cyber attacks. Cold Storage vaults are remote servers were your digital currencies are stored & such servers are disconnected completely from the internet. The trading organizations keeps a certain amount of digital currencies in their online wallet, while the remaining are stashed away in remote servers accessed via secure channels.
Gold Standard Security
There have been instances where traders had to deal with huge losses due to security breach. 17,000 bitcoins went missing due to an entrepreneurial error & around 4,000 customers’ wallets were emptied leading to the shutdown of Poland’s bitcoin market. Approximately 130,000 BTC (Bitcoins) were lost in 2011, 159,200 BTC in 2012 & 172,000 BTC in 2013.
Deploying complex security solutions for protecting digital currencies has, thus far, become vital. Enter Changepond’s experience in offering a suite of gold standard security services; protecting digital currencies from phishing attacks or SQL injections is made possible. The service offerings include facilities like customized cold storage applications supporting 256-bit encryption, multi-factor authentication, IP address restriction, pseudonymous address, manual signatures & so on.
Changepond secures your digital currencies with a set of pre-generated double encrypted private keys using a computer that is not connected online. These keys are stored on password protected USB drives and paper copies. Paper back-up of the keys are maintained along with QR Code and Base58 strings. IP address restriction enhances security by permitting access to only those devices that are configured with acceptable IP addresses. Multi-factor authentication ensures that a unique security code is used every time a user wants to make an important transaction. Pseudonymous address makes it tough for hackers to identify and correlate to a particular transaction. Manual signing process adds an additional layer of security above all the digital measures that are in place.
Changepond engaged with one of the Europe’s largest digital currency broker for deploying a suite of gold standard security services enabling them to offer storage & online trading solutions for securing bitcoins. With wide capabilities in offering gold standard security solutions that is hard to breach, Changepond is one of the very few companies that have the capability to deliver solutions that adhere to standards set forth by the Digital Currency Regulatory Board (DRCB). The security strategy put forth by the team (designed based on parameters such as risk profiling, security policy imperatives, level of security at various layers) ensures that the data is double encrypted and is comprehensively secured using various encryption algorithms & multi-factor authentication. Overall, the solution is capable of simultaneously protecting additional currencies in digital format.