Jack Dorsey’s Block Launches Bitkey: A New Self-Custody Bitcoin Wallet With No Seed Phrases

1 year ago
 A New Self-Custody Bitcoin Wallet With No Seed Phrases

Block, Inc. has precocious introduced Bitkey, its innovative self-custody bitcoin wallet, offering a unsocial attack to bitcoin management. Unlike accepted wallets which trust connected passwords oregon effect phrases, Bitkey utilizes a distinctive 2-of-3 multi-signature mechanics for recovery.

Bitkey Wallet Approach Ditches Traditional Seed Phrases

Bitkey, conceived and built by Block, Inc. (formerly Square, Inc.), is simply a caller bitcoin (BTC) wallet that encompasses a mobile app, a hardware device, and a suite of betterment tools. The non-custodial facet of Bitkey’s plan is antithetic arsenic it eliminates the accepted reliance connected effect phrases. Instead, the wallet employs a 2-of-3 multi-signature strategy wherever the idiosyncratic is provided with 2 keys: 1 integrated wrong the mobile app for mundane transactions and different stored successful a abstracted hardware instrumentality for further security. The 3rd key, held by Bitkey, serves arsenic a betterment mechanism.

“People holding bitcoin connected exchanges and custodial platforms contiguous are often hesitant to determination to self-custody wallets due to the fact that they are tense astir making mistakes, particularly with the humanities request that you indispensable safely defender 12 oregon 24-word agelong passwords called ‘seed phrases,’” Lindsey Grossman, the Business Lead for Bitkey said. “People person often felt stuck: disquieted astir the deficiency of power they mightiness acquisition connected a custodial level oregon exchange, yet besides anxious astir the unforgiving merchandise experiences that beryllium successful different self-custody wallets historically available.”

Grossman added:

With Bitkey, we wanted to physique a merchandise that helps bring everyone to self-custody, combining robust information and betterment options, with a elemental lawsuit acquisition that puts them successful power of their money.

Block and Bitkey are not unsocial successful shifting from the accepted effect operation approach. Binance precocious unveiled a self-custody Web3 wallet that utilizes a shared cardinal system. Similarly, Ledger, a salient hardware wallet maker, has rolled retired a shared cardinal shard system for recovery. Although Bitkey retains the 3rd cardinal for the cryptocurrency owner, the institution emphasizes its inability to entree the funds without the different 2 keys.

“A 3rd cardinal is connected Bitkey’s server and is utilized for lone 2 things: to assistance customers determination bitcoin with conscionable their telephone for the transactions they take to marque connected the spell without their hardware device, and to assistance customers retrieve their wallet if they suffer their telephone oregon hardware – oregon adjacent both,” Bitkey’s announcement details. “Importantly, due to the fact that Bitkey lone has entree to one, not 2 oregon 3 keys successful this 2-of-3 multi-signature wallet, Bitkey cannot entree oregon determination a customer’s bitcoin without them.”

What bash you deliberation astir the Bitkey wallet? What bash you deliberation astir wallets moving distant from accepted effect operation methods? Share your thoughts and opinions astir this taxable successful the comments conception below.

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