Exchanges hardware wallet models | Bitcointalksearch.org

Micerker

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Quote from: BaiMangal on April 11, 2019, 05:56:51 PM

What type/models of hardware wallets would exchanges use?

Some have like 100k bitcoins in hardware wallets. How do they keep the qctual wallet from being compromized. They surely cannt let anyone even the owners tranfer funds outside from it or even hold it Grin

Thats open to criminals chasing people with access to those wallets even if the employees were honest they are still under risk if they have sole access. So what type of hardware wallets would they use?

I see ledger has a wallet that can have multi seed access and transaction size restrictions but thats something new, surely there was a solution before ledegers one.

There is some information about some new technologies that help Bitcoiner keep Bitcoin safe in physical wallets. According to the report, I know if the material impact or unauthorized access, the hard wallet will automatically cancel and you can still access the wallet through memo characters.

Lucius

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Quote from: BaiMangal on April 11, 2019, 05:56:51 PM

What type/models of hardware wallets would exchanges use?

Big crypto exchanges like Coinbase take the safety of their clients coins very seriously. Process of creating thousands of private keys keys start in Faraday tent at randomly chosen secure location. They have two laptops and one is chosen by flip of a coin, and device is destroyed after the process is over. Then they use armored vehicles to transfer those printed keys to secure location, and backups are send at multiple locations around the world.

So most of users coins (around 98%) is offline an it is stored on paper, at least this is case with this exchange.

https://www.wired.com/story/coinbase-physical-vault-to-secure-a-virtual-currency/

Haunebu

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Quote from: Josmorio on April 12, 2019, 01:17:21 PM

Quote from: BaiMangal on April 11, 2019, 05:56:51 PM

What type/models of hardware wallets would exchanges use?

Some have like 100k bitcoins in hardware wallets. How do they keep the qctual wallet from being compromized. They surely cannt let anyone even the owners tranfer funds outside from it or even hold it Grin

Thats open to criminals chasing people with access to those wallets even if the employees were honest they are still under risk if they have sole access. So what type of hardware wallets would they use?

I see ledger has a wallet that can have multi seed access and transaction size restrictions but thats something new, surely there was a solution before ledegers one.

IMO, starshing 100k bitcoin in a single hardware is a totally bad idea, to be on a safer side,ill be glad to advise any exchange CEO to spread out their crypto asset in multiple hardware wallets with varying security measures so that in a worst case senario the digital asset will not all be tampered all at once via a single point of entry. and also, the concept of a once-per-quarter check up just like how Darb is doing it right now will help in cutting down the level of such occurrence.

I don't think that it is a bad idea as long as the wallet itself is reliable and popular enough to trust with such a large amount of funds. Diversifying does not always imply that your funds will be safe since it all comes down to the wallet itself at the end of the day.

Trezor would be my preferred wallet in this case. HSM is a good alternative.

Josmorio

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Quote from: BaiMangal on April 11, 2019, 05:56:51 PM

What type/models of hardware wallets would exchanges use?

Some have like 100k bitcoins in hardware wallets. How do they keep the qctual wallet from being compromized. They surely cannt let anyone even the owners tranfer funds outside from it or even hold it Grin

Thats open to criminals chasing people with access to those wallets even if the employees were honest they are still under risk if they have sole access. So what type of hardware wallets would they use?

I see ledger has a wallet that can have multi seed access and transaction size restrictions but thats something new, surely there was a solution before ledegers one.

IMO, starshing 100k bitcoin in a single hardware is a totally bad idea, to be on a safer side,ill be glad to advise any exchange CEO to spread out their crypto asset in multiple hardware wallets with varying security measures so that in a worst case senario the digital asset will not all be tampered all at once via a single point of entry. and also, the concept of a once-per-quarter check up just like how Darb is doing it right now will help in cutting down the level of such occurrence.

Sonu_titu

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Exchanges do use normal wallets and there was a situation where the CEO of the company died and the exchange was unable to return funds to investors as the password and other detail were only know to him.

https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/crypto-exchange-ceo-dies-in-india-platform-cant-pay-investors-as-he-had-the-passwords/articleshow/67861832.cms

Ucy

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I don't understand how these exchanges work but sometimes I also wonder why they don't consider storing traders coins on very secure wallets (with even the private keys given to the traders) while they issue fake versions of the coins to the traders to trade with on their centralized exchanges.
Whenever the traders need to make withdrawal, their final trading balances are subtracted from their initial deposit on the secure wallets.

The private keys could be passworded to prevent hackers and the traders from making withdrawal without the verification of his final "fake coins" balance.
Parts of the password to the the private keys could be given to the traders while the exchange holds the remaining parts. . The remaining parts can be released once the traders apply for withdrawal and his final balance checked. This should all be done automatically.

Meysa_richa

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it's true that there are still many who have a lot of bitcoin in their hard wallets, and they have to look after them and provide security to their wallets.

Ailmand

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Quote from: BaiMangal on April 11, 2019, 05:56:51 PM

What type/models of hardware wallets would exchanges use?

Some have like 100k bitcoins in hardware wallets. How do they keep the qctual wallet from being compromized. They surely cannt let anyone even the owners tranfer funds outside from it or even hold it Grin

Thats open to criminals chasing people with access to those wallets even if the employees were honest they are still under risk if they have sole access. So what type of hardware wallets would they use?

I see ledger has a wallet that can have multi seed access and transaction size restrictions but thats something new, surely there was a solution before ledegers one.

I guess as long as you have the pass phrase for your wallet it is not a problem if you will physically lose your hard wallet. We don't actually know how exchange keep their assets and users' deposits safe on their end. I think they have prepared several measures on how will they store huge amount of crypto even before they have launched their exchange.

odolvlobo

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Companies that need to store private keys use something called a Hardware Security Module (HSM). It is similar to a hardware wallet.

https://en.wikipedia.org/wiki/Hardware_security_module

OmegaStarScream

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It doesn't have to be something fancy really. It could've been paper wallets or a Trezor device (since Trezor came to life 2012-2013) with multi-signature (with Electrum).

I don't think exchanges were using cold storage really, until they bitcoin gained value and exchanges started getting hacked etc. even now, some of them are not doing it.

BaiMangal

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What type/models of hardware wallets would exchanges use?

Some have like 100k bitcoins in hardware wallets. How do they keep the qctual wallet from being compromized. They surely cannt let anyone even the owners tranfer funds outside from it or even hold it Grin

Thats open to criminals chasing people with access to those wallets even if the employees were honest they are still under risk if they have sole access. So what type of hardware wallets would they use?

I see ledger has a wallet that can have multi seed access and transaction size restrictions but thats something new, surely there was a solution before ledegers one.

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