Threats to valuable goods are the grounds why they usually held in secure environments. Those risks can occur in the form of theft, natural catastrophes, fire accidents, illegal use, loss. To protect themselves against these threats and inconveniences, owners take deliberate action to defend and preserve those goods that they value.
Digital Assets Attract Attention
One of the usual and most trustworthy ways to secure personal goods is to store them in the banks’ safes. Consequently, the Bank of Canada, VersaBank Inc., said that the construction of cryptocurrencies vault means the importance of these digital assets.
Blockchains and cryptocurrencies are in an early stage of development, but the effects that events around the ecosystem generate points to a lot of potential in the industry.
Digital assets are created by blockchain’s whose ownership depends on the competence to keep private keys that allow access. Those secret keys are usually very tender entities because their loss automatically involves the loss of each coin and asset to which they are linked.
It’s About Private Keys
Losing a private key means that such digital assets, such as Bitcoins, are lost permanently. We can ask why an entity of such value would be so delicate to stay shielded. The fact is that this system is part of the security on which technology is built.
Taking into account the value that can be deposited in a “cryptocurrency” wallet, giving up the security process could have a return effect, which would lead to cases of property theft.
The most, wallets have ways of recovering lost keys or regain the access to their wallets when secret keys are lost or neglected. For example, the twelve Bitpay backup phrase can be used to restore access when passwords are forgotten. Nevertheless, users are always advised to keep it in a safe spot and never share it with anyone.
The Story of Coins Lost
James Howells’ story in Wales is famous in the Bitcoin world. Howells is known as the man who threw a hard drive containing 7500 Bitcoins in 2013 when coins were very little value. Bitcoins are now lost and can not be recovered, despite the wealth that those coins might deserve at this time.
Some other coins may have been wasted in silence, either in a smaller number, not by the news, or by other means, inclusively the death of their owners. Such scenarios prize questions as to how the wealth of such magnitude can be preserved and eventually transferred to heirs in case of death or incapacity.
Hence, taking into account the current value attached to digital assets and cryptocurrencies and also potential prospects, VersaBank Inc. are an indicator of what the future of the ecosystem should be waiting too.
A Digital Vault
Regarding the technology behind the digital vault created, VersaBank CEO David Taylor tells:
Our distributor on this market is safe and super private. The bank would have no back door to open the vault, just provide the facility that people could put their digital keys too.
This digital vault is designed by a squad of software engineers led by the IT security expert Gurpreet Sahota. The safe will keep digital data safe on computer servers around the world. As a safety box, the bank will not know what is inner, and VersaBank cannot access the content.
Bank safes are considered to be one of the safest and secure places to properly store articles and precious records. Since digital assets gradually join the mainstream, more formal and organized management techniques, including appropriate security and transfer methods, will be expected. Evident, such developments are already upon us.