Coinbase Cryptocurrency Wallet Introduces Cloud Storage For Private Keys

THELOGICALINDIAN - The accepted cryptocurrency barter Coinbase has launched a new affection for its standalone agenda asset wallet The software will action users the adeptness to aback up their clandestine keys application either Google Drive or iCloud

The abstraction is to accord users of the Coinbase Wallet a assurance net in the accident that they lose admission to the accessory aloft which the software is installed or appear to confuse their clandestine keys somehow. However, some in the cryptocurrency association accept accent that the extenuative of clandestine keys on billow accumulator casework could betrayal users’ funds to added threats.

Cloud Storage of Keys Comes to Coinbase’s “User-Controlled” Wallet

San Francisco-based Coinbase is one of the few exchanges to barrage its own wallet software, allowance advance the affectionate of budgetary ascendancy Trace Mayer’s “Proof-of-Keys” accident championed on the 10th ceremony of the Bitcoin arrangement activity live. Users of the Coinbase Wallet are the sole holders of their clandestine keys. As such, they potentially adore a abundant college amount of aegis than those allotment to leave money on centralised exchanges, which are decumbent to hacks and added aegis breaches.

The latest affection launched for the Coinbase Wallet is a congenital in advantage to aback up the user’s clandestine keys to either Google Drive or iCloud. This is declared to accommodate them an added way to admission their cryptocurrency backing should they lose admission to the wallet for some reason.

According to a Coinbase blog post, copies of the clandestine keys stored to the billow will be encrypted and crave the wallet’s countersign to access:

“Your advancement is encrypted with AES-256-GCM encryption and attainable alone by the Coinbase Wallet adaptable app. The advancement can alone be decrypted application your password.”

The column goes on to accompaniment that Coinbase will not accept admission to users’ passwords or funds at any point back application the wallet. They additionally accompaniment that the billow account provider will not accept admission to either back the keys can on alone be decrypted with the user-set password.

Coinbase says that it still encourages users of its wallet software to advancement their clandestine keys manually. The column additionally reminds users of the accent of application two-factor affidavit as an added aegis precaution.

Optimisation for Convenience Always Costs Some Security

Not anybody is afflicted with the latest amend for the Coinbase Wallet. Podcaster and adept Bitcoin backer @WhalePanda Tweeted the following:

At the @coinbase aggregation meeting: "What's the dumbest affair we could appear up with now that we've gone abounding shitcoin?"https://t.co/8JaLv8W7j4
— WhalePanda (@WhalePanda) February 12, 2019

In the comments to the aloft Tweet, added association associates accurate their apropos about the update. One alleged it a “hackers dream”.

Others were added compassionate of Coinbase’s declared motives in their responses but still alleged it a alarming abstraction generally:

To be fair, it's an encrypted backup. Unfortunately best bodies don't bother authoritative their passwords secure, and relying on there actuality no bugs with the encryption accomplishing aloof adds one added affair to anguish about.
— ⚡Random Name (@username0ne) February 12, 2019

Others still argued that such convenient functions on agenda bill wallets are all-important if Bitcoin and others are to see the array of boundless acceptance abounding in the amplitude are acquisitive for:

https://twitter.com/skiddi3_/status/1095411643528474627

Whilst it is absolutely accurate that users of the Coinbase wallet opting to aback up their keys to the billow are creating an added advance agent adjoin themselves, for some the accessibility will be account the slight abridgement of security. No cryptocurrency accumulator adjustment is absolutely bulletproof and altered types of users crave altered levels of security. Some are accommodating to cede a little (or alike a lot) for greater convenience. Providing they are acquainted of the added risks, they should be chargeless to accomplish their own decisions.