Winklevoss Twins Secure Patent for new Cryptocurrency Key Storage Method
Tyler and Cameron Winklevoss the duo behind Gemini, the licensed digital asset exchange and custodian built for both individuals and institutions, have just secured a patent for a new form of crypto key storage.
Key storage is becoming more important as the space grows, institutions such as gemini who are entrusted with securing billions of dollars of other people’s money need specialised measures in place to prevent loss of these funds via hacks as unlike traditional fiat, crypto transactions are irreversible, as such there is no leeway in messing up. Previous hacks of exchanges has swiftly lead the permanent closure of many in this space.
The patent describes methods involving air-gapped computers, geographically remote vaults, plastic cards and potentially even papyrus. The document which can be read in full here further outlines plans to develop a network of computers with the ability to generate accounts for storing cryptocurrencies or crypto related exchange-traded products (ETPs). The computers would be isolated except for when they are necessary to transfer assets.
The Keys generated by this network would then be split into multiple parts and kept separated on an external memory device, such as a flash drive, CD, DVD or written down on a laminated card, sheet of paper, piece of plastic or even papyrus. However it is stipulated at least one part must be stored electronically. All keys would be delivered to a key storage company in person via a runner, mail, fax, or created on site at the storage facility and anyone looking to access this information would be required to provide multiple forms of Identification.
It comes as no surprise certain aspects of the patent are left vague to avoid giving away too much information on how this will be implemented to potential attackers, however it provides an intriguing insight into how the Winklevoss twins views security on their exchange Gemini as well as steps others in the space may also be taking to protect their users.