Bitcoin Secured: Australia’s First Crypto Vault to Offer Super Secure Cold Storage
Australia’s push to become the world’s leading crypto hub took a step forward recently after Decentralised Capital announced the launch of its first offline vault. Created in conjunction with Sydney’s Custodian Vaults, the cryptocurrency safe will offer customers a more secure cold storage solution.
First reported by the Australian Financial Review (AFR), the innovation will provide a physical place for people to store their private keys. What’s interesting about the new offline vault is that it will treat cryptocurrencies like any other precious asset. Customers using the service will be able to lock their private keys in personal vaults that are protected by CCTV, fire controls, pin codes and biometric scanners. What’s more, the building itself will be manned by security guards and all deposits will be insured.
A Secure Solution to a Serious Issue
Discussing the project with AFR, Decentralised Capital’s founder and director Stephen Moss said that the aim was to offer a truly secure service for serious crypto users. In recent years, online options like Opera’s browser-based wallet have become the default storage method for low-level investors. However, the threat of hacking means whales have had to use offline alternatives such as the Trezor or Ledger Nano S USB sticks. While these hardware wallets are a safer option, they’re not impervious to threats such as theft or damage.
In fact, misplaced USB sticks have become the subject of multiple Reddit threads in recent years, with users facing the prospect of losing their entire crypto net worth due to a lapse in concentration. To mitigate the potential risks, the Ledger Nano S offers a recovery mode in the event of theft, loss or destruction. However, this system is dependent on the user having access to their 24-word recovery seed. Without that, the wallet can’t be unlocked and the funds are lost forever.
Keeping Cryptos Under Lock and Key
Australia’s new crypto vault is an attempt to further reduce the risk of bad luck, timing or judgement crippling an investor’s portfolio. By locking the private keys in a single secure wallet that’s only accessible to the user, Decentralised Capital believes it can set the standard for crypto security in Oz. For Moss, the market has yet to reach its true potential and his company is looking to ensure the long-term future of Bitcoin and other cryptos. During his interview with AFR, he pushed back at claims Bitcoin was a bubble waiting to burst. In his opinion, even if the price of Bitcoin remains volatile in the short-term, the underlying technology is a stable long-term proposition.
“This is a solution for the next phase of the industry and it gives real security. You can’t hack your way into the safe. In my opinion, Bitcoin will not be remembered as the bubble, but the pin. While the short-term future of Bitcoin may be debatable, the Blockchain and its benefits are not,” Moss told AFR on July 15.
Another Step Towards True Integration
The joint venture between Decentralised Capital and Custodian Vaults might not be the first offline storage solution, but it could be the most secure. Xapo users currently have the ability to keep their funds in an underground vault. Similarly, Canada’s VersaBank launched a digital safety deposit box known as the VersaVault in June 2018. However, what Moss and his company are offering appears to be a real-world solution to a digital problem. By treating cryptos the same as gold bullion and the like, the vault should appeal to those used to locking their valuables in secure locations. What’s more, the innovation is another example of cryptos’ integration into our everyday lives.
Much like Ripple’s recent relationship with Walmart, more aspects of modern society are being touched by crypto technology. For the industry, this is a positive. To avoid the proverbial bubble referenced by Moss, Bitcoin, Ethereum and the blockchains that underpin the world’s cryptocurrencies need to show they have a place in our lives. Whether this means cryptos as a currency, a new way of processing data or simply an enhancement to our daily lives, the industry has to prove its worth. Launching a crypto vault is another example of how new technology can not only improve by a mesh with something we already know.
Investors shouldn’t expect the price of Ethereum et al to shoot up in the wake of Decentralised Capital’s announcement, but it should have some longer-term benefits. Indeed, if the super wealthy are convinced that security is no longer an issue, they’re more likely to invest in the market. Should that happen, liquidity will increase and this, in turn, will buoy the market as a whole.