November 15 2021
Digital currencies have gained recognition since the publishing of Satoshi Nakamoto’s Bitcoin whitepaper in 2008, yet the industry continues to strive toward mainstream adoption. Institutional backing has recently begun to shift in favor of cryptocurrency, fulfilling a key ingredient for helping the industry reach its full potential. This is evidenced, in part, by the SEC approved Greyscale Bitcoin Investment Trust, which has $3.7 Billion in various cryptocurrency assets under management. In addition, Fidelity Investments reported that one 1/3 of institutional investors own digital assets. The tides are turning, yet the complexities of cryptocurrency tokens have stifled widespread adoption. Vault12 is advancing the industry forward with its personal digital asset security platform.
Vault12’s Chief Crypto officer, Wasim Ahmad, explores acceptance and adoption in a recent keynote address at Parallel Summit — a virtual event series exploring fundamental transformations in the blockchain industry — The virtual conference discussion was centered around the future of crypto assets, regulatory developments, and hurdles to adoption — the full summit from June 19, 2020 is available at https://parallelsummit.io and includes a riveting panel with SEC and CFTC Commissioners Hester Peirce and Brian Quintenz that describes the future of digital assets.<a href="https://medium.com/media/827984477be17aec57e5df17ebefd887/href">https://medium.com/media/827984477be17aec57e5df17ebefd887/href</a>
In his keynote, Ahmad highlights Vault12’s mission to bring innovation to the crypto market amidst a Renaissance of digital asset protection.
In today’s uncertain times, digital assets promise to revolutionize the financial industry and its systems, but the journey to mass adoption will be a marathon, not a sprint. Regulation and security are key components in the process, which faces significant hurdles. As those invested in traditional markets begin to transition to digital assets, the institutional custody that has always existed in traditional markets must be apparent, according to Ahmad, yet personal custody will be just as important when it comes to cryptocurrency.
Traditionally, security measures for cryptocurrency have been convoluted and difficult to keep track of, with few options available. For example, of the 18 most popular crypto wallets, there are only two options for saving a wallet’s seed phrase — a list of random words (usually 12) used to recover crypto assets. Some only offer one option: to write it down. As a result, access to one’s digital currency carries inherent risk of being affected by hacking, natural disaster, or other barriers. The risk of hacking has been made evident with popular scandals like Mt. Gox, where $460 Million was stolen from the world’s largest Bitcoin exchange.
Aside from hacking, there is also a risk of losing access to one’s seed phrase, without which the digital currency itself is rendered inaccessible. The most seasoned crypto veterans go to great lengths to prevent the heart-fluttering moment of having misplaced or inadvertently lost a seed phrase, yet conventional methods all have their pitfalls. Imagine writing a seed phrase on a sheet of paper, which is thrown out by an unknowing family member or losing access to stored files containing your seed phrase. This means that unless you have a great (read: 100% accurate) memory, your digital assets could be inaccessible. Forever.
The Covid-19 pandemic uncovered another potential barrier to access when banks, along with other business were ordered to close. Imagine having stored portions of your seed phrase in various physical locations such as a bank safe deposit box. Post-Covid-19 investors will prefer decentralized solutions over highly centralized institutions when it comes to accessing digital assets. Enter, Vault 12.
According to Ahmad, the next generation of investors will need to understand these risks and must have a tried and true policy at their fingertips to avoid barriers to access. Vault12’s digital asset protection platform seeks to help solve current security shortcomings. The mobile app is leading a paradigm shift toward heightened security and more reliable accessibility of one’s digital access. This is carried out via a digital vault, which is protected by the vault owner’s trusted social network, known as “guardians”. End-to-end encryption offers an added layer of protection as neither party has the full seed phrase, nor can they see their portion. Guardians can also be replaced if a contact has been lost or severed. Lost your phone? Not to worry as your Vault can be recovered from your new mobile device.
After 5 years of development, the Vault12 app is finally available for download in the app store. Download it now or request a live walk-through here.
The Renaissance of Securing Digital Assets and the Barbarian Hordes was originally published in Vault12 on Medium, where people are continuing the conversation by highlighting and responding to this story.
(including Cryptocurrency Seeds, NFTs and Art)
Every digital asset you own should be backed up, protected and remain accessible. Cryptocurrency in particular is difficult to secure. With natural disasters, hackers, to badly implemented security, you are always at the mercy of others.
Vault12 Personal Digital Asset Security helps you recover, backup and provide legacy inheritance for all your digital assets, including Bitcoin, Ethereum, NFTs, other cryptocurrencies, private keys, seed phrases, digital art and of course, your crypto wallets.
Download Vault12 today – Try the free plan:
Pass on your Digital Assets to future generations
Vault12 Digital Inheritance is the first solution to offer a simple, direct, and secure way to ensure digital assets can be accessed by future generations. Digital Inheritance enables investors to designate an individual who will inherit their entire portfolio of digital assets stored in a secure Vault once the time comes, eliminating undue risk and the need to continually update an inventory or continually issue updated instructions.
Designed to be used alongside traditional hardware, software and online wallets, Vault12 helps cryptocurrency owners, ICO investors, professional cryptocurrency traders, and high net worth investors safeguard their digital assets without storing anything in the cloud or in fact any one single location. This increases the protection and decreases the risks of loss.
A digital Vault containing your digital assets is assigned to trusted people or devices, known as Guardians. Your Guardians can be adjusted as needed in real-time so that the appropriate number are always guarding your digital assets. No one can access your assets and only you get access when you need.
The Winklevosses came up with an elaborate system to store and secure their private keys. They cut up printouts of their private keys into pieces and then distributed them in envelopes to safe deposit boxes around the country, so if one envelope were stolen the thief would not have the entire key.
The idea behind Vault12 is how do we essentially split that responsibility, make that problem of key control less a technological one by essentially making it into a social one with networks of people that they trust.
Exchanges are the main target for hackers. Those are the biggest honeypots. So the number one rule in Crypto is, do not keep your money on an exchange, and if you're going to custody that money, you need to do it off of the exchange with a product like Vault12.
Security and usability are inextricably linked, the former cannot exist without the latter. Vault12 understands the need for end-to-end management of this experience as well as the importance of integrating into the prevailing crypto ecosystem
As we move to a more open financial system driven by advanced blockchain technology and cryptocurrency, we need smarter ways to ensure that the system is trustworthy. Vault12 does this by addressing a foundational need -- ensuring that your crypto assets are not only protected by decentralized security, but also by your trusted inner circle. Your private key never exists in one place or with one entity, reducing risks from hackers as well as everyday accidents.
Security is the lifeblood of industry, commerce, and leisure. As more people use decentralized applications, they will need a way to back up their crypto wallets and exchange accounts. Vault12 provides a simple and natural way to reduce risks and combat the fear of forgetting seed phrases and private keys.