Crypto Wallet Hardware & Enhancements
We cannot overemphasize how important wallet security is, as in times past there have been cases of people losing funds as a result of lax in security of different crypto storage options, theft, hacks, carelessness, etc. Different developers have gone back to the drawing boards to come up with better solutions that will enhance crypto wallet security and thus save crypto investors and users form the activities of cyber criminals.
As a way to improve the security of crypto wallet, two Ethereum startups are making moves to provide banking grade security to crypto wallets, and thus protect users of the Ethereum blockchain. Nexus Mutual which is an insurance cooperative, and Argent (wallet provider) are the two Ethereum startups planning to provide a combination of insurance and smart contracts, in order to ensure the safety and security of funds owned by Argent users, and thus have them protected from hackers.
Smart Contract Use Cases
There is something unique about the techniques being applied in enhancing the security of the crypto wallets. For instance, the smart contracts employed in the system is designed such that even if thieves gain access to the funds in the wallet, they won’t be able to drain the wallet, because there will be a temporary freezing of the transfers especially when the addresses are not available on the crypto wallet user’s white list.
Furthermore, when there is a frozen transfer, the user can cancel the freeze in 24 hours, just as it is done in banks, where the bank steps in to freeze credit card transactions when they discover that there may be some suspicious activity happening to the credit card. It may interest you to know that reversals do not happen with crypto transactions, hence, the moment it leaves your wallet, there is no reversing the process.
According to Itamar Lesuisse, Argent’s co-founder, the team is not just focusing on existing crypto users, but new ones just joining the crypto community, hence, they intend to repeat the type of security they would get if it were the traditional banking system.
Should the smart contract fail to do what it was designed to do, Argent and Nexus are creating a form of insurance fund to have users insured against losses. In order to become a participant, the users would need to stake some Nexus (NXM) tokens, and get rewarded after, the same way policyholders at an insurance company get dividends when they stake their capital.
It is imperative to know that the protection level of this system is not up to that provided by the FDIC insurance which has the full support of the U.S. government. However, Nexus seeks to leverage different traditional methods and ideas to promote community-focused and customer centric mutualism via its crypto-based fintech solutions.
The product was launched in the past week, and Argent is staking the NXM against the smart contracts of the platform’s wallet, hence, they are first in line to either reap the fruits or suffer the setbacks if there are any.