Adam Back makes case for simpler security as Blockstream launches Bitcoin custody system
Blockstream’s new custody system, developed with Thales, uses dedicated hardware for transaction signing as Adam Back advocates for offline security to reduce cyber risks.
Blockstream, in collaboration with French technology group Thales, has unveiled a new institutional digital asset custody system aimed at bolstering Bitcoin's security and reducing cyber risks. Adam Back, the company's co-founder and CEO, a renowned cryptographer, advocates for offline security to safeguard Bitcoin from increasingly sophisticated cyberattacks.
The solution, unveiled on Friday, integrates Thales' hardware security modules (HSMs) with Blockstream's Secure Multi-Party Computation (Secure-MPC) technology, enabling institutions to authorize transactions while keeping sensitive cryptographic operations within dedicated security hardware, emphasizing that all processes occur within the secure environment of Thales' HSMs.
Back argued that conventional MPC protocols are overly complex, requiring extensive device communication and impractical for offline cold storage. He highlighted the Binance $6.3 billion hack as a stark reminder of the dangers posed by internet-connected custody infrastructure, emphasizing the importance of keeping signing devices offline to thwart unauthorized access.
Back also cautioned about the potential threat posed by artificial intelligence, suggesting that AI could help attackers uncover subtle flaws in intricate MPC implementations. He believes that the broader custody industry should adopt similar offline security models, advocating for a return to basic principles by storing assets in cold storage to mitigate potential AI-assisted attacks.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
