Who Is

watching out for you?

In today's world you need to understand a few more things...

Who Is

knocking on your virtual front door?

It could be someone down the block or from the Bloc

A hardware wallet that secures your virtual money

Alena Vranova, SatoshiLabs

19-October-2015 Bitcoin wallet now used in 100 countries.

Developers of the bitcoin hardware wallet have celebrated its active use in 100 countries. TREZOR is designed eliminate the need for 3rd party services to secure bitcoins, enabling security and simplicity for bitcoin users.

If you’re unfamiliar with Bitcoin, you can catch up with some history and check current Bitcoin value.

As a virtual currency Bitcoin is a hacker target. They are also lost via software. In 2013 when the Bitcoin price rose to $1,000, Kaspersky Labs began including Bitcoins in its research on financial cyber threats. That’s when SatoshiLabs began work on a hardware wallet.

“This is the first real end user solution to losing Bitcoins,” said SatoshiLabs CEO Alena Vranova. “The concept comes from the premise that computers and phones are designed to share data. Hackers are always ahead. Whatever is valuable – your money, your data – has to go offline, where it’s not reachable by hackers.”

The premise is you don’t need a bank or reliance on any third party when you have Bitcoins in hand. A security issue how a lot of private data is concentrated into certain points. Bitcoin allows for decentralizing information, and TREZOR provides security for that. 

“We created a small computer, approximately 6cm (3in) that uses Bitcoin cryptography,” Vranova said. “When set up the first time it generates a private key for all coins supported, as well as other purposes, because it can be used beyond Bitcoin. Private keys never leave the TREZOR, and it can only be connected via USB. The protocol discards everything except the necessary protocol.”

The template with the prefilled information goes through TREZOR, letting you visually validate what you are actually signing, and that you are not falling victim to phishing.

You use the button press for a physical verification. You sign the transaction with your private key and send it out. Whatever wallet – you can use a compatible wallet if you want – commits the signed transaction.

“The beautiful thing about TREZOR is it’s a physical, tangible device to help overcome resistance to virtual money,” said Vranova. “When I tried to explain to my Mom she didn’t quite get the concept of virtual money. A couple of months later when I showed up with the prototype she understood that she could put it in her pocket.”

When you lose it or break it, your Bitcoins aren’t at risk.

Relax about remembering your private key: when you set it up the first time it creates 24 words mnemonic for your master private key.

To store your entire transaction history into a new TREZOR or compatible wallet, take out the recovery, open a compatible wallet, type those 24 words and recover your entire transaction history. Those 24 words only show on the TREZOR display; not on the computer.

Use it to protect private data, use private keys to sign any challenge-response, use it as a locking device, and to skip entering user names and passwords when logging into websites.

In Bitcoin you can manage mutual funds, except once the money is sent, it’s gone. To ensure you have good governance of a fund you can allow TREZOR to create transactions. You can validate transfers of any assets you own to someone else, and verify they are the only recipient.

When you use TREZOR to login to a website, it shows you the correct URL, which allows you to validate you’re actually on the correct site, and not a phishing site set up to spoof.

If you’re using a PIN to unlock, TREZOR generates a 9-number matrix that is shuffled every time. If your PIN is 5678, you click them into your computer. The computer has no idea, yet TREZOR can validate your PIN.

A keylogger can still capture a screenshot of a virtual keyboard. That won’t happen with TREZOR, because the matrix of the virtual keyboard is on the TREZOR display.

You click empty fields and the computer has no idea what you just did, so you unlock.

"A lot of wallet users understand this is a core security element that is very useful for many things,” Vranova said. “It might seem basic, however we labeled the interface so that all of the data is encrypted and stored in cloud storage. It’s an elliptic curve encryption, readable only one way. Only you can decrypt.”