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On Tuesday October 23 Sony Computer Science Laboratories (Sony CSL) revealed they have developed a contactless cryptocurrency hardware wallet.
Many cryptocurrency enthusiasts are buying and trading cryptocurrency using online crypto wallets. Investors often use whatever wallet is recommended or included in the platform they are buying from, but is that the safest way? The way cryptocurrency investing works, is that when you buy crypto, you aren’t buying the cryptocurrency itself, but rather the private key that allows the user to freely trade that cryptocurrency. If the private key becomes compromised, then bad actors can use the key to trade your cryptocurrency, and there is little you can do the reclaim this.
This isn’t just an issue of personal security, for example making sure you protect your key on your end, keeping it private and not spread the details of it, keep it in a secure location etc. There is only so much you can do to protect it, but you also have to put trust in the companies and servers who hold the wallet. In recent years we have seen some high profile hacks on cryptocurrency servers that calls into question where your key is really safe.
Sony’s hardware wallet is intended to be separate from the PC or smartphone native OS and manages the key for the user. Because the key is stored independently of online servers, it is inherently safer from attack by hackers looking to exploit cryptocurrency wallet servers.
The IC card-type cryptocurrency hardware wallet will also be capable of drawing on blockchain technology to protect other information, not just the cryptocurrency key, for example, personal information.
Sony aims to further “the widespread adoption of blockchain technology” and advance the commercialization of its hardware wallet. The company has recently also introduced its new blockchain-powered digital content management platform.
As cryptocurrency continues to grab the attention of the public, its essential the platforms customers use are protected. With it being a new and emerging technology, there is significant caution towards it application from the public, and any hacks will cause bad publicity that will scare potential investors away from cryptocurrency. This is why it is so important to find a way to secure cryptocurrency through blockchain technologies and continue to advance the field. We are seeing an increase in the number of blockchain startups, as well as reputable tech giants who are making waves in the industry. With this continued hunger for safety, security and technological advancement, cryptocurrencies should grow the trust of the public.