James Hong Explains Why BitGo Multi-Signature Wallets Are Most Secure
In an easy-to-read article, serial entrepreneur and investor James Hong discusses the best way to store Bitcoin.
His conclusion: BitGo.
Most Bitcoin wallets use a single key. Desktop software wallets keep that key in a file, while hosted or cloud wallets store it on a server. This creates a single point of failure risk. If the key is stolen, lost or corrupted, your money is gone.
BitGo has changed the security paradigm and created a multi-signature wallet.
“I think of this as being a bit like movies where nuclear missile systems often require two separate and different keys to launch nuclear missiles,” writes Hong. “If you only have one key, it’s worthless.”
BitGo creates 3 keys in a secure manner, and you need 2 of them to unlock funds or send Bitcoin. One key is kept with BitGo, one controlled by the user, and a third held offline as a backup key.
This allows you to have the convenience of a hosted wallet and the close to the security of cold storage.
Read Hong’s article on Medium and related discussion on Reddit. Visit BitGo.com to create your own secure wallet.
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