‘No luck in dying, there will be luck in love, ‘ the old saying tells. The same, it seems, is happening to early bitcoin investors Cameron and Tyler Winklevoss. A few months ago the U.S. SEC rejected their proposal on bitcoin ETF, an investment fund which would allow investors to pile into bitcoin without actually purchasing it.
So no luck in ETF, there will be luck in… crypto key "depo" system. Recently the Winklevoss’ patent application for it has been approved by the U.S. Patent and Trademark Office. It mightn’t be as empowering as a long-expected ETF, but the cold storage system is already something.
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What Would Winklevoss Cold Storage Be Like?
The founding fathers of the cyber-money bourse Gemini have had their patent brought out on the Patent and Trademark Office site this week. As per this document, the twins may begin implementing their idea of a cold "depo" method. This patent involves:
- air-gapped machine
- geographically remote vaults
- plastic cards
- and any physical objects like paper or even papyrus
The won patent draws the formation of a computers net which will be able to create accounts for preserving cryptos and ETPs (crypto-related bourse-traded products). To provide the security, all computers on the net will be isolated apart from a case when it is time to transfer coins.
Thus, the storage will be acting as a cold storage system. The latter, by the way, is considered much safer than hot storages which use clouds to preserve data and are easily hacked.
In the Winklevoss’ system, machines will create the keys for novel accounts. After that, they will be divided into segments and recorded on an outer memory apparatus. For instance, that might be a flash drive, CD, DVD. Otherwise, the data might be recorded on physical objects like a laminated card, paper, plastic and even papyrus.
How Will it Work?
The document states that minimum one set of keys needs to be preserved on an electronic appliance, but it is possible to have them kept on physical systems, in addition to that. For instance, one set could be held on papyrus, one set — on a sheet of paper and the other one on a flash drive.
In the patent, it is said that the keys ought to be sent to a key storage company:
- In person
- Via fax
- Via mail
- By creating right at a secure storage website
The access to the keys will be provided to owners only in case they present three molds of identification.
The document also suggests machines would have access to a solid portal. The latter would link up the computers to the DLT network so that operations would be processed.
Why is The Protection of Asset Keys Crucial?
As it is explained in the patent, such protection will help cyber asset ledgers avert the steal of money. Moreover, securing blockchains would help consensus protocols function justly and stave off double-spend attacks. Obviously, that’s because the DLT nets are utilized for carrying out financial operations.
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