Oct 18, 2018 at 17:30
Oct 23, 2018 at 07:46 UTC
Top Security MNC Launches Offline Vault Storage for Crypto
G4S, a security service-providing MNC, is making a foray into the crypto scene by introducing cold storage options for crypto investors and users. Cold storage refers to offline wallets that are completely disconnected from the internet to prevent theft of funds via hacking and this London-based company is now moving beyond its traditional domain of producing monitoring equipments, transportation for prisons and response units, and working on providing offline storage to crypto users to ensure the safety of their digital currencies. The last few years, especially 2017, have seen a meteoric rise of cryptocurrencies such as Bitcoin, Ether, Ripple, Litecoin etc. With higher incentives, have come higher risks as criminals and swindlers have set out to steal these crypto assets.
The company said that it has already begun a collaboration with a crypto exchange, which was not named in the announcement. A senior risk analyst of the company, Dominic MacIver explained their security solution, saying that it has been built like a ‘vault storage’, where assets are not just taken offline but also broken down into several incoherent parts and stored separately so that they individually wouldn’t have any value to criminals even if they managed to get past the vaults, which are high security storage systems safeguarded stringently.
Hot wallets, or wallets connected to the internet have frequently been subject to security risks, including a case from the earlier part of this year where swindlers siphoned off cryptocurrencies worth $500 million from Japan’s crypto exchange Coincheck. Online wallets hence frequently have their security compromised and this new solution, which offers an impregnable storage system, offers a new way to protect their virtual assets. This new mechanism is expected to be of great use to institutional investors, who remain wary about the security threats.MacIver stressed on the uniqueness of their solution and highlighted how this would help investors escape “robbers, scammers, market manipulators and many others”.
Of late, some major players in the finance sector including giants like JP Morgan, Goldman Sachs and Northern Trust have begun to mull over starting custody services for digital currencies and we have already seen the Coinbase exchange launch a custody service of their own. Clearly, the market is ripe for more storage options and G4S’s unique solution might just win hearts of crypto investors.