Gem and Elliptic are partnering to offer a joint multisignature bitcoin wallet solution.
Each will hold one private key, the client holding the third. Multisig wallets require transactions to be signed with any two of three available keys. Typically, the client holds two of the keys, the custodian holding on to the third as a backup. The new scheme further decentralizes the security of funds, not entrusting any single party with full control.
According to its website, Gem provides Bitcoin application developers with pre-built, full-stack Bitcoin API, multisig wallet and security functionality. With this out of their way, developers can focus on the application’s unique components and potentially complete it with just a few lines of code.
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It also says to have built out a “redundant infrastructure”, allowing developers to offer 100% uptime. Recently, the startup released an API for its multisignature wallet, which was also recently enhanced by the addition of Hardware Security Modules (HSMs) from payment security provider Thales e-Security.
Elliptic provides a “deep cold storage” vault solution for bitcoins, which keeps them offline and out of the reach of hackers, as well as employing additional physical measures of protection. It says to have insurance coverage for holdings, and earlier this year attained ISAE 3402 accreditation following a review from KPMG.
One of the value-adds of the new scheme is in the event the client loses his private key. Gem and Elliptic would use theirs to sweep funds into a new account, from where they will be administered anew.