NEWSLETTER
There are approximately one billion cryptography users worldwide and, in the most generous estimate, only 2.5% wear hardware wallets. That is a small number, but I am relieved that it is not higher.
Because? Because I want people to be on board bitcoin for one billion, and I want to see everyone safely safely. The consumer hardware wallet industry is one of the greatest obstacles to achieve this goal. And not only for the adoption of bitcoin: the entire decentralization revolution is at risk if we do not address the fatal defect in the heart of the most popular wallets in the world.
The wallets are treading water
Last year on these pages, Lucien Bourdon celebrated “10 years of the wallet revolution.” There are many things I agree with, but an obvious omission. Almost without exception, consumer hardware wallets 'leaders' in the market have barely innovated in a decade. And as all security experts know, if they are not constantly moving forward, it is going back.
The problem is not simply that the new threats are constantly arising, is that bitcoin's use cases are rapidly evolving. bitcoin and other cryptocurrencies are no longer “only” value stores; They are now a means for all types of increasingly complex transactions. However, the underlying technology of hardware wallets does not change essentially since the days in which its main utility was like a safe and offline key. It is the same with UX, with users who are still expected to write their seed words and then narrowed their eyes on a small screen every time they want to approve a transaction.
This is not just a bitcoin problem. The future of security will see everyone safeguarding our most valuable digital assets and confidential data with cryptographic keys. In fact, the entire decentralized economy depends on what is inside these wallets, so we take a look.
Trust, do not verify?
Lucien was right to emphasize that bitcoin's force comes from his commitment to open source principles. Where I am deeply disagree with him is that the “most of the wallet industry has adopted the open source.
The fact is that the main hardware wallets continue to be built in closed code patented systems that users cannot completely inspect. If they cannot inspect, they cannot verify; If you cannot verify, why should users take the statements of manufacturers about trust?
I suspect that the reason why many hardware wallets remain “black boxes” is because they have something to hide, such as smart card technology used by many of the wallets to which Bitcoiners trust their keys. This technology is not suitable for today's cases of use of today's cryptography, and certainly not for a future of decentralized security, where we will need keys to safeguard everything, from our digital identities to access credentials.
A barrier to innovation … and adoption
The continuous dependence of hardware wallets in closed and patented systems is not just a security nightmare: it is also terrible for innovation and adoption of bitcoin.
Today's wallets are walled gardens effectively, where developers must follow restrictive rules and cannot offer any degree of customization for users. This is not just Freakery control by itself; Often, it is a function of the underlying technology. Devices such as Ledger must give each application access to the master seed; Obviously, that means that they have to be checked carefully before they are approved (if they are ever).
If this was how the App Store worked, we would still carry the nokia 3310 round in our pockets. Instead, we obtained open ecosystems, a prosperous community of developers, competition and a galaxy of brilliant applications.
That is what wallets want. When developers can build without permission, they will not only offer a novel functionality and an improved user experience, but will play an essential role in the evolution of wallets to support (and ensure) the growing complexity of bitcoin applications.
Wallets must be an innovation center, a place for developers to build the murderous applications that will force people to adopt services based on bitcoin and Blockchain. Actually, an ecosystem such as Ledger is the “anti-application store”, which contains decentralized innovation instead of promoting it.
Open your wallet
The solution is simple and essential: transparency. Just as strong encryption is based on open source algorithms proven publicly to guarantee safety, devices that store cryptographic keys must follow the same philosophy. Hardware and open source software allow safety researchers, developers and even individual users auditing and verifying security measures, reducing dependence on manufacturers and increasing general reliability.
There are already newer and safer alternatives. Hardware wallets based on open source microkernel architectures provide a more robust security base, allowing an independent verification of their safety. These systems ensure that no unique company controls the safety of user cryptographic keys, reducing the risk of hidden vulnerabilities and promoting innovation.
The good news is that only one in 40 cryptographic users currently has a hardware wallet. Let us make sure to give the other 39 a truly safe way of self -conflict your digital future and support innovation that will attract more millions to adopt.
This is an guest publication of Zach Herbert. The opinions expressed are completely yours and do not necessarily reflect those of btc INC or bitcoin magazine.
