Cryptosat, a company that builds satellites that focuses on blockchain and crypto applications, has partnered with Dfns Labs, a web3 wallet infrastructure and security solutions company, to launch a “Space Wallet.” This innovative wallet uses Cryptosat’s threshold signature scheme as a co-signer to transactions.
At the moment, it is available for Bitcoin transactions, and there are plans to expand to other blockchains in the future.
This new Space Wallet might sound like technology from a sci-fi film, but it is true. Most crypto investors are familiar with self-custody wallets, wherein there is a choice between getting hardware or software types. These wallets are protected by several security features, which include encryption, password, biometric authentication, and recovery phrase. Some wallets also have a multi-sig feature wherein multiple keys are required to approve a transaction. Multi-sig wallets are usually used by institutions as an extra layer of security.
In the simplest of terms, we can compare Cryptosat’s satellite to Google Authenticator, but more advanced and on steroids. The Space Wallet is a crypto wallet that is protected by Cryptosat’s cryptography and uses a satellite as a co-signer for multi-sig transactions. Essentially Cryptosat uses the threshold signature scheme, which is a fancy way of saying that one of the signatures needed to complete a multi-sig transaction will be generated by a satellite. It will be almost impossible to hack the satellite unless the perpetrator has access to a spaceship.
Benefits of Using the Space Wallet
Let us list the benefits of using a Space Wallet.
- Enhanced security: It provides a high level of security for cryptographic and blockchain applications by using a satellite as a co-signer. The satellite orbits the Earth, which prevents outside interference or tampering. The satellite also monitors any attempt to get close to it. Space agencies like NORAD are also monitoring all satellites; the company will know if any untoward event happens.
- The Space Wallet also uses a novel threshold signature scheme that splits the private key into multiple shares that are distributed among different signers, reducing the risk of a single point of failure.
- Cryptosat uses cube satellites. And all transmissions can be monitored openly with the right equipment. This allows users to access data without the need for an internet service provider. The publicly accessible transmissions also make it hard to commit fraud.
Blockchain in itself is already a secured network, but that does not stop bad actors from trying to hack crypto wallets. Some of these hacking events could have been prevented with beefier security protocols. Space Wallet does this by splitting private keys that are distributed to different persons. One of the co-signers is a satellite in space which makes it hard to tamper with. This security feature is literally out of this world.
About Cryptosat and DFNS Labs
Cryptosat is a company that builds satellites that power blockchain and crypto applications. The company built its business around satellites based on the notion that they are physically inaccessible, which makes them perfect for protecting cryptographic protocols. The company uses cube satellites and launches them into space via SpaceX. Cryptosat was founded by Yan Michalevsky and Yonatan Winetraub; both have PhDs from Stanford University.
Dfns Labs is the research arm of Dfns, a company that provides web3 wallet infrastructure and security solutions. According to its Linkedin account. “ Dfns is a safe, cloud-native developer tool that gives banks, investors, and companies the freedom to enter crypto markets on a battle-designed security infrastructure.” It is led by its Chief Scientist, Dr. Jonathan Katz.
Source: Yahoo Finance
Featured Image from Unplash
