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Bitcoin developer has proposed a new model for storing bitcoin

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HOW TO STORE BITCOIN ON A LEDGER NANO S (Hardware Wallet)

Bitcoin developer has proposed a new model for storing bitcoin

Bitcoin developer has proposed a new model for storing bitcoin
CONTENT

  • Now it is proposed to split bitcoins and set time frames for withdrawal

  • The problem of non-refund of sent funds is one of the main problems in the industry

  • So far, the idea has been implemented only on paper.

International consortium of news organizations developing transparency standards.

The new way of storing bitcoin cryptocurrency implies an artificial delay in the withdrawal of funds and the separation of assets, thus reducing the risk of asset theft.

Bitcoin developer has proposed a new model for storing bitcoin

One of the first bitcoin programmers, Brian Bishop, proposed a new model for storing bitcoin. According to the prototype published on GitHub, Bitcoin is proposed to be stored as an additional layer on the existing blockchain network..

Excited to announce the release of my prototype for bitcoin vaults today

email: https://t.co/CyfakcXSTu

code: https://t.co/qCE0fNYzOs

– Bryan Bishop (@kanzure) April 13, 2020

The fundamental concept implies storing bitcoin on an additional layer, allowing you to get rid of the flaws in the security of storing bitcoin on digital wallets.

The essence of existing stand-alone cryptocurrency wallets is that the user himself stores all the keys (public and private) to access the wallet.

In the event that an attacker manages to gain access to the private key, all user funds can be stolen in a matter of seconds..

Bitcoin developer has proposed a new model for storing bitcoin

The vault protocol proposed by Bishop is a kind of solution to the problem of recovering stolen funds..

How it works

With the help of the protocol, according to Bishop, users will be able to set the time frame for the withdrawal of cryptocurrency funds themselves, thus limiting the withdrawal of all assets from the wallet in a single operation.

Bitcoin located in the storage can be divided into so-called “shards”. Each shard, which contains part of the cryptocurrencies, can be configured to be withdrawn exclusively to a specific wallet at a given time interval.

In addition to shards, the use of an overseer is suggested. Every time the overseer notices a BTC transfer from the shard, the owner of the funds is notified.

If the attempt to withdraw some of the funds from the shard is not authorized, the wallet owner can activate a pre-signed transaction that will transfer all bitcoins to the hardware wallet before the shard is unlocked for theft by an attacker.

So far, Bishop’s idea remains only on paper and has no practical solution. Bishop himself suggests that additional software will be needed to store bitcoins in this form..

Critical improvement

Earlier we wrote that the co-founder of Fintech company Blockstream Peter Will announced the formation of a large-scale update for Bitcoin, called Taproot. & Schnorr.

Update, focused on scalability, as well as speeding up block processing in the bitcoin blockchain network by 2.5 times.

Bitcoin developer has proposed a new model for storing bitcoin

The issue of non-refund of sent bitcoins stands apart in the cryptocurrency industry.

So, for example, even though some of the organizers of the PLUS token financial pyramid were detained by the Chinese authorities on charges of stealing more than $ 3 billion in bitcoin equivalent, the data shows that stolen bitcoins are still actively laundered throughout the market through various digital exchanges..

What do you think about the new way of storing cryptocurrency? Share your opinion with us in the comments below..

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