How to Ensure Security of Cryptocurrency Wallets
Penta Security, a Korean security provider specializing in web, Internet of Things (IoT), and data security solutions and services, has announced a new line of cryptocurrency hardware wallets with enhanced security by way of secure key lifecycle, encryption, and authentication. Closed beta testing is due to finish in June of this year, the company said.
In the midst of the wave of companies releasing cryptocurrency wallets to jump in on the cryptocurrency hype, Penta Security says it sought to differentiate itself by focusing on a vulnerability the current cryptocurrency environment doesn’t quite address: key management.
The majority of current cryptocurrency wallets store the key within the wallet to digitally sign transactions. While “hot” wallets are known in the industry to be more vulnerable to attacks because the keys are utilized in a connected environment, even “cold” wallets, which are touted to be more secure for safekeeping assets offline, can still be vulnerable to key theft during transactions if proper security measures are not in place.
According to the company, most cryptocurrency wallet users believe that a cryptocurrency wallet stores and secures their cryptocurrency. However, the wallets in actuality store keys that authenticate the identity of the user.
The bulk of cryptocurrency hacking incidents occur because of the mismanagement of keys. Consequently, the ideal and more secure practice would be one where the key would not have to leave the wallet when initiating a transaction and access to the device itself is protected by authentication.
The new cryptocurrency wallets will address these needs and be available in two physical form factors, a card type and a device type. The device type will feature a display and be a stand-alone model embedded with all security features for a secure cryptocurrency environment.
It will be capable of carrying out the entire cryptocurrency process from key generation to transaction. There will be several variations of the device in order to meet the differing demands of the users.
The card type will feature advanced secure key storage and offer multiple authentication features such as one-time-password (OTP) to act as a two-factor authentication (2FA) device. It will work in conjunction with the company’s wallet management mobile application to maintain authentication security throughout the key management and transaction process.
Both card and device types will be compatible with the majority of cryptocurrencies on the market and have capabilities to support both Bluetooth and Near Field Communications (NFC) technologies.
Syncing with smartphones and utilizing PIN authentication, as well as biometric authentication, the wallet will provide enhanced security to defend against cyber-physical threats.
Chief Strategy Officer of Penta Security Systems, DS Kim stated, “The current representative symbol of the blockchain is cryptocurrency, but its potential vulnerabilities are dampening the future value of this technology.”
He continued regarding the new launch, “Penta Security’s cryptocurrency wallet is a comprehensive solution designed by a company that has had decades of security experience and research. It’s not only designed for cryptocurrency transactions, but also to meet current and future blockchain protocol security standards.”
Photo courtesy: Penta Security