USE CASE N°02

COLD WALLETs

The Issue

Digital assets (cryptocurrencies such as Bitcoin or tokens such as Augur) are stored on blockchains. Access to these digital assets are done by means of public and private cryptographic key pairs. The blockchain can be seen as a bank’s vault and the private keys are comparable to a customer’s PIN. The biggest difference being that the owner of the private key is the de facto owner of the digital asset. Private keys have therefore become a major target of advanced hacking attacks.

 

This makes the safe storage of vulnerable private keys the number one concern for owners of digital assets and the exchanges that they use. This concern is not theoretical as the high-prole hacking of various personal ac- counts and exchanges would attest. Although the use of hot or cold wallets can improve the resilience to fraud and criminal activities around the storage and use of digital assets, they generate usability issues that a cold wallet storing private keys in paper format then stores in a physical

 

safe is reliable but requires manual human intervention whenever tokens are exchanged. This remains highly cumbersome if frequent use is sought by owners and in some instances entirely defeats the added value of digital assets.


TRANSACTION WORKFLOW

HOT DIGITAL WALLETS

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Our Solution

The RIDDLE&CODE digital cold wallet leverages the RIDDLE&CODE chip’s ability to generate and store its own private key “off-the-bus.” In other words, the generation, storage and use of private keys is entirely done by the chip. The usability issue is therefore addressed while maintaining the superior security of cold wallets. Another level of security is added by using multi-signature whereby multiple chips are required to sign off on a given digital
asset exchange.

Advantages

  • Institutional investors can confidently enter the blockchain-based digital trading space
  • Frees blockchain technology from its most fundamental interfacing issue
  • Mobile – chips can connect via BLE

Clients

  • Any person or company that uses and holds digital assets