Bitcoin security platform BitGo announced the launch of the first automated open source Key Recovery Service (KRS) software that allows generating, securing and storing private backup keys, which should make it one of the most secure Bitcoin vaults in the world.
A major problem Bitcoin wallet users encounter is the security of the keys. While most new secure wallets implement multi-signature, in which 1 or 2 keys are created and stored by the user, a problem arises when the user forgets one of the passwords as they would then lose access to the wallet and its contents. However, BitGo’s new software and 2-of-3 key model are configured to eliminate such a danger.
Ben Chan, Platform Lead, BitGo commented:
“As a multi-sig, trustless wallet provider, BitGo believes the user has to be in control of the funds. At the same time, many users don’t want the burden of securing keys or remembering difficult pass phrases at the risk of losing their balance. However, we didn’t want to create more than 1 key for our users, which is why we’ve open sourced the software so others can run it and provide keys for creating wallets on demand.”
According to the whitepater, BitGo’s KRS provides the user with one key, BitGo with the second key and the third party KRS (that the user can choose from a list of secure third party KRS providers) with the backup key. Thus, this model ensures the wallet owner never loses control of their digital assets.
The first company to integrate BitGo’s new KRS software is a bitcoin holding key backup service Keytern.al.
“As longtime advocates for accessible and practical techniques to improve safety and privacy for end users, we are thrilled about the opportunity to work with BitGo to deliver these important services to customers of their multi-sig wallet,” said Jeffrey Paul, Co-founder, Keytern.al. “Our experience over many years of cryptography engineering as well as working with most of the world’s leading bitcoin exchanges showed unambiguously that multi-sig is the single best way to avoid many risks associated with using bitcoin, and expert, safe, and convenient key handling is key to the success of multi-sig deployments.”
BitGo is also in talks with Elliptic with plans to bring on additional KRS providers in the coming months.