The CEO of Blockstream Adam Back is looking out for ways to secure BTC holdings on a deeper level for everyone’s comfort.
The CEO discussed at the Lighting Conference in Berlin how taking care of backups can be inconvenient for a person. For example, using an exchange with personal wallet and losing the password, the exchange can give out a new one. That means the user doesn’t have full control over the wallet.
On the other hand, Blockstream’s Green Wallet is a smartphone wallet that has multi-signature and two factor authentication (2FA) security system. Both are used for approving a transaction. If the device is gone, accessing the funds can be done through a recovery mechanism.
There is a downside to such authentication system – once the backup is lost, no one can regain them as no one knows the keys.
“I think there’s a possibility in the future for a sort of combination where you can have the protection from losing your backups and yet still have control.”
Blockstream is apparently looking into the possibility for developing a second backup of the backup. This process needs to be carefully thought through as there can be mistakes in the backup and funds can be lost.
“I think, counter intuitively, we should be able to have user control – like you actually have your keys and a bank-like sort of two-factor authentication device to approve your transaction, [which] makes you much safer from malware and hackers […] – and the ability to recover from backup failure if you lose your backups.”
Adam Back also announced that Blockstream is taking Tor support for the Green Wallet which hides the IP address and therefore aims for full anonymity from hackers.