New Bitcoin cold storage device CoolWallet from CoolbitX Technology is the size of a credit card, doesn’t need cables, fits in a common wallet and will grant owners confidence in the security of their Bitcoin wealth.
Cold storage is quickly becoming a popular concept within the cryptocurrency industry.
Considering the inherent risks involved in online storage of Bitcoin, the industry is devising better methods to keep the coins safe. One of these is somewhere the hackers cannot reach, i.e. (pc or smartphone).
Cointelegraph interviewed Shannon Yeh, Product Manager of CoolWallet, to get an in-depth analysis of the product and Alena Vranova, Product Manager of Trezor, a competitor in this marketplace for over a year for a comparison of the pros and cons of the two solutions.
The Basic Concept of CoolWallet
Shannon Yeh is a member of the CoolbitX Technology team of security specialists, engineers and design professionals since 2012, owned by Jetstream Holding Ltd.
According to Shannon, CoolWallet is the first wireless hardware wallet that can be used by smartphones to manage Bitcoin transactions. Other hardware wallets require a computer and/or a cable of some kind. CoolWallet is designed primarily for convenience. It is a product that has been designed to be stable for a minimum of two-years, which simply means that the battery life is designed to perform optimally for two years and may not perform perfectly afterwards, but can still be effective.
Alena Vranova, Co-Founder & Director at SatoshiLabs, producers of the Trezor cold wallet, has some doubts about this new “card wallet”.
In her opinion, CoolWallet does not "replace" the security of a hardware wallet or the mobility of a mobile phone or paper wallet.
“I've had a short look at the CoolWallet. Honestly I'm not sure what its target market is. It is neither top secure, nor autonomously mobile per se. So it doesn't "replace" the security of a hardware wallet or the mobility of a mobile phone or paper wallet. It is nice that they want to provide a credit card form, but that alone should not be a reason to buy it.”
Alena thinks that the need to have both mobile phone and the CoolWallet card charged might be a problem in real life for payments on the go.
The CoolWallet Power System
Shannon explained that the CoolWallet is designed with an irreplaceable inbuilt battery which is glued to the inner walls of the card covers, the battery can be recharged by an NFC charger - ‘CoolLink’ which is a system developed specifically for the CoolWallet by CoolbitX Technology.
CoolWallet Operating System and Security
According to Shannon Yeh, “CoolWallet is a HD wallet, so it is advised to have the backup seed written down and kept in a safe place. In the event of loss or damage, you can recover/restore your Bitcoins with another compatible wallet or just get another cool wallet to restore.
A lot of people have also asked the similar question; what happens in the event of loss of a mobile device which is paired to CoolWallet?. With the seed your data can be restored easily. CoolWallet follows BIP32.”
But according to Alena Vranova the device is not comparable to a wallet:
“If I understand correctly, it is a 2nd factor authentication card to your mobile wallet. It looks like it generates an OTP to confirm your mobile wallet transactions, the seed is generated on a mobile device, therefore considered compromised already. It's quite surprising that they warn about making a digital copy themselves. Also, users will need a trusted display to see the address where you are sending your Bitcoins.”
Every new product is subject to review, especially within circles where there is a direct connection with one’s cherished valuables. Bitcoiners need convenient, effective and secure ways to preserve their wealth, and will keep searching for better solutions. Various options keep emerging within the Bitcoin environment on hardware wallets, exchanges and new solutions create competition on the market,which is a good thing for the Bitcoiners population.
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