There is a saying in the crypto world — if you don’t hold your private key, someone else does. This has certainly been the case cryptocurrency exchanges, where millions of user funds have been stolen in recent months. And even wallets where users control their own keys have been hacked, again with millions in crypto being stolen.
So how can users protect their private keys (and funds) from hackers?
To perform a standard transaction using another wallet, you make use of a private key (a long, randomized alphanumeric string of data known only to you) and a public key that is out there for everyone to see. Secrecy is paramount, because if anyone else gets their hands on your private key, they have just as much power to access your funds as you do.
While this setup is great for verifying transactions without revealing your private key, that key can be — and has been — stolen. And mainstream adoption of cryptocurrencies cannot happen until investor funds are truly secure. Even keeping your private key completely offline in a paper wallet (literally written on a piece of paper) is less than optimal, since that piece of paper can be lost, destroyed in a fire, or stolen.
Instead of generating and storing a private key, the DigitalBank Vault Device, uses a different system . Any kind of ” Keys” never leaves its device (so can’t be intercepted). The Private Key is never stored on the device .
This means that each transaction is trustlessly verified without exposing any sensitive information about the users involved.
The result is an unhackable cold storage device— and that is a huge step up in crypto security. DigitalBank has a solution that stops hackers in their tracks.
The DigitalBank Device gives users the convenience of signing transactions that a private key would normally provide — but without forming a private key that can be copied and stolen.
Traditionally, the signing process is performed on a device on which secret user data (private key) is also stored or derived, which creates a single point of attack. The DigitalBank Device OS , replaces the conventional method of signing transactions with a distributed signing algorithm.
As recent events around the world demonstrated, owners of cryptocurrency are in danger of being physically attacked by thieves who can force you to hand over access to even a secure hard wallet.
That’s why the DigitalBank implemented mechanisms to protect user funds in any situation
If an attacker on the street forces you to give up access to your account, you can use DigitalBank “plausible denial” feature to grant the attacker access to only a small part of your funds while concealing the bulk of your holdings and sending a distress signal to your designated contact.
If something happens to the owner of the wallet, access can be transferred automatically to a trusted party pre-programmed by the owner (including which biometrics can be used and how much time of owner inactivity needs to pass).
Sure, nothing is unhackable — but the DigitalBank Device , comes so close and makes accessing user data so difficult that users can finally feel secure about their crypto holdings.