I’m not going to start this post from a corny “As the popularity of and demand for cryptocurrencies has increased…”. It’s an obvious thing, that cryptocurrencies are going to become an essential part of our lives. They have caused quite the uproar in the media since 2009 and is step by step penetrating payment systems all over the world.
As crypto assets gaining real value, pops up a logical question. Where should I store my coins? There are 2 biggest options: software and hardware wallets — I know, there are also hot and cold wallets, but it’s the topic for an upcoming post.
It’s been already proven, that hardware wallets are more reliable, because private keys are stored in a protected area and cannot be transferred out of the device in plain text. However most of them are still vulnerable.
First of all your hardware wallet can be compromised once an attacker comes into possession of the device. It’s also possible, that the owner of device can be forced to disclose master password.
Existing hardware wallets don’t have any solution to this problem other than back up your account on a new device. However in order to do so you have to get on the Internet and report your device being lost or stolen. This may take you not that long, but that time might be enough to lose your coins forever.
It’s quite complicated to protect the assets from human factor. But there are some options. One of the best of them is the emergency date destruction function. It’s a function, which can be activated by entering fake master password or multiple input of incorrect password. Can come in use in any unforeseen situation.
Attackers can also use a compromised computer to move large amounts of money between one or more accounts on a regular basis. If you connect your hardware wallet and work on it using browser extension or installing any software for your wallet, you are vulnerable to this attack. It’s necessary to mention here that if you practice using single use addresses when sending money from your hardware wallet or working with the devices, which don’t require any extensions or software installation, this vulnerability can be prevented.
Security is first and foremost the most valued and important detail in the block-chain community. Giza hardware wallet take extreme measures to password protect and encrypt your data so that even if someone does get a hold of them, it’s unlikely for them to get the access to your assets.