Coinkite Leverages HSM Technology for B2B High Security Storage Solution

Coinkite is expanding its solution offering toward secure private key storage for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term businesses.

Until now, Coinkite has specialized in Bitcoin POS terminals and debit cards, as well as a secure wallet. They will be leveraging their custom-built Hardware Security Module (HSM) technology already used for their debit card customers to provide Cold Storage Cold Storage Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Read this Term for exchanges and other online wallet companies.

By introducing this type of solution, Coinkite is changing gears somewhat from its previous strategy, which shied away from cold storage. Then, the priority was to provide full transparency and immediate access to funds, without clients having to fret about their existence or if they are being used as “play money”. For enterprises however, the dynamic is different as there is more at stake and a differing set of priorities.

The launch of the business-focused solution comes at an opportune time for Coinkite, as several exchanges have grappled with hacking attempts, DDoS attacks and the “malleability” issue, which are of constant concern as long as storage is connected online.

By the same token, they face a potential challenge when it comes to the lead times required to release funds for clients of these businesses. This is especially relevant for large withdrawals in a short period of time, when, for example, markets are gripped by mass fear and clients flood the exchange with huge withdrawal orders. This may not be a non-issue though, as such runs on exchanges were themselves driven by client fears as to the security of their funds, which is already pre-empted by the solution.