Winklevoss twins win cold storage patent. In the official document, brothers laid out a plan to develop a network of computers capable of generating accounts for storing cryptocurrencies and cryptocurrency-related exchange-traded products (ETPs).
7 September, AtoZ Markets – The founders of the cryptocurrency exchange Gemini, Cameron and Tyler Winklevoss, have reportedly won a patent for a cold storage method. The method involves air-gapped computers, plastic cards, geographically remote vaults and, supposedly, papyrus.
Winklevoss Twins Win Cold Storage Patent
The document has been filed under the twins’ firm Winklevoss IP, LLC. It has been published this Tuesday by the US Patent and Trademark Office. In the official document, brothers laid out a plan to develop a network of computers capable of generating accounts for storing cryptocurrencies and cryptocurrency-related exchange-traded products (ETPs).
The computers would be isolated except when needed to transfer assets as a security measure. They would be primary acting as cold storage devices. Moreover, the computers would generate these keys for new accounts. These keys would be then separated into parts and recorded an at the external memory device, such as flash drive, DVD, CD. They can also be written into a laminated card, sheet of paper, piece of plastic or even papyrus, according to the document.
Secure digital asset storage systems
The patent further suggests a number of ways of manufacturing cards:
“For example, two sets may be stored on paper, and a third set is stored on papyrus. Multiple private keys may be required to access a digital wallet. Multiple keys may be stored in the same manner as key segments. In embodiments, where a second private key is required, the one or more individuals or systems providing the second key may be located in different administrative portals, different rooms, and/or different geographies from the one or more individuals or systems providing the first private key.”
It then also notes that at least one set of keys must be stored on an electronic memory device. The patent reads:
“Accordingly, a plurality of administrative portals may be employed by secure digital asset storage systems in accordance with the present invention. In embodiments, a plurality of portals may be used for retrieval of stored digital assets (e.g., by requiring a signature or private key from at least two individuals located in at least two different portals). In embodiments, one portal may be used for re-assembling key segments and thus providing one private key, and an individual in a second location may be required to provide a second key or signature before a digital wallet may be accessed. The second key or signature may be encrypted and/or segmented as described herein with respect to a single private key.”
Keys Protection Importance
Following on this, the computers would have an access to a secure portal, which could link the machines to the Blockchain network in order to process transactions.
As per the published document, it is very important to protect asset keys for Blockchain. This is done in order to prevent the theft of funds. In addition, the Winklevoss’ patent notes that digital asset ledgers are utilized to facilitate financial transactions. Therefore, securing them allows consensus protocols to function properly and prevent double-spend attacks occurrence.
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