Several issues can arise from storing information, such as the private key, which gives access to a user’s funds: a trusted third party may cheat or suffer from an attack on its database, which we have seen in the case of Mt. Gox but also in numerous other scenarios and industries where valuable information was compromised; equally damaging, by storing the private key himself, a user may not be able to keep it hidden from unauthorised access in a convenient yet secure way. As a result, the cost of managing and insuring funds reaches a level of displeasing heights.
The solution, explained by nChain’s Chief Scientist in his sixth Medium post of Bitcoin (SV) use cases “Secure wallet systems,” lies in a signature scheme which allows businesses and users to store and access funds both securely and conveniently—where:
The signature scheme is a product of nChain’s patent innovations for the Secure Split Key technique and Deterministic Key Generation, and allows wallet providers, banks, exchanges, and other services to provide an account-management system that benefits from a combination of attributes:
- biometric smart card—set according to the user’s preferences and needs.
The need for private, secure, yet user-friendly solutions that meet modern application standards in ease of use and accessibility has led us to build a key part of nChain’s Metanet project, where device and web information can be stored and organised on the Bitcoin SV blockchain. An integrated BSV wallet allows for direct and efficient monetisation, seamlessly protecting and quantifying the value of our data.
Gain more insights into building the account-management system powered by BSV and make it your business by reading Craig Wright’s entry here.
Or get in touch with nChain Professional Services here.