Israeli Startup Creates Offline Crypto Wallet with Online Connectivity
[NEWS BLOG]: Israeli Startup Creates Offline Crypto Wallet with Online Connectivity
Israeli startup GK8 unveiled a cold-storage crypto wallet with on-network transfer capabilities, the company said.
GK8’s technology removes many of the dangers internet-accessible crypto wallets face – hacks, attacks, unexplained losses — while preserving their more convenient features, such as sending and receiving digital assets.
In an interview, GK8’s co-founder Lior Lamesh told CoinDesk that a “unidirectional connection” links its wallet directly to the blockchain, where it transfers assets as conventional wallets do. GK8’s one-way signaling does not itself operate on the internet.
GK8 says its techniques “bypass core assumptions related to cryptocurrency transfers and eliminate attack vectors to any asset transfer.”
Several cryptography experts are among GK8 board members, including Prof. Eran Tromer, one of security token Zcash’s founding scientists.
In a video, Tromer said: “GK8’s cold wallet solution improves on the state-of-the-art by having essentially unidirectional communication from the wallet to the outside and never accepting raw information from the outside back into the cold wallet.”
“This minimizes the attack surface and prevents attacks,” he said.
GK8 secured five patents for its innovations, according to the announcement. A patent abstract associated with Lamesh described the technology as follows:
“The digital wallet device is electronically disconnected from other digital devices and comprising: a cryptocurrency integrated circuit (IC) that is isolated from any computer interface” … “and a unidirectional communication hardware for sending said transaction to a communication device for broadcasting said transaction via a network.”
The founders are veterans of Israeli cybersecurity, according to Lamesh. Both served as cybersecurity experts to the prime minister before founding GK8 in 2018.
Lamesh said that he and co-founder Shahar Shamai began working on GK8’s cold wallet after finding security vulnerabilities in “state-of-the-art” wallets. They were both bothered by the risks of storing assets online.
“We tried to think: how can we make a fully operational cold wallet with no internet connection at all. And we ended up doing exactly that,” Lamesh said.
He said that GK8 seeks to become the cold wallet of choice for institutional investors.
GK8’s project raised $4 million in seed funding from a series of Israeli investment firms, including from the government-run Israel Innovation Authority.
OTHER RELATED NEWS
Bitcoin Plays With USD 9,000, While Virus Fears Weigh on Stocks
Bitcoin (BTC) is once again trading around USD 9,000, while the risk-off sentiment has hit stock markets across the globe hard in recent days.
At pixel time (10:35 UTC), BTC trades at c. USD 9,010 and is up by 4% in the past 24 hours and the past week. Earlier today, the price reached USD 9,100 before dropping to almost USD 8,900 and moving back to USD 9,000.
Also, while the U.S. S&P 500 stock index has sold off about 2.2% over the past three days, the number one cryptocurrency is up by about 8% over the same time period.
Although - read more.
Cryptocurrencies Show Signs of Maturing But Remain Too Risky
Bitcoin (BTC) presented historically low volatility this year, argues the Dec. 2019 SFOX report released on Jan. 8. Coupled with a lower correlation with altcoins, there are emerging signs that the market could start to behave in a more predictable way. However, the cryptocurrency asset class remains disproportionately risky compared to the stock market.
In its final monthly report for 2019, the analytics firm SFOX analyzed the yearly performance of Bitcoin and other cryptocurrencies.
Compared to traditional assets such as gold and stocks, Bitcoin held a remarkably low correlation index for the past six months. Its average 30-day correlation amounted to -0.037 - read more.
What Death Spiral? Bitcoin Hash Rate Surges to Fresh All-Time High
Bitcoin Hash Rate Establishes New All-Time High
According to crypto data firm TradeBlock, Bitcoin’s network hash rate just hit a new all-time high. The company shared the image below on July 7th, showing that the seven-day moving average of the hash rate is now above 124 exahashes per second. This is over double that seen a year ago.
The hash rate is the measure of the computational power being used to secure transactions on a blockchain network. As Bitcoin.org describes the term:
“The hash rate is the measuring unit of the processing power of the Bitcoin network… When the network reached a - read more.