VeKey by VeChain is a Multi-Signature Hardware and Software Solution for Private Key Management
Ever since the QuadrigaCX case opened up to the public, the risks of blockchain technology are becoming a huge topic for conversation around cryptocurrency circles.
The loss of over $190 million USD of users’ funds due to the lack of a private key to the cold wallet storage highlights these types of risks a blockchain faces. The company has since declared bankruptcy as the court battles continue dragging the management team.
Not only does such risks present a financial risk to investors, global adoption of blockchain technologies and cryptocurrencies takes a hit as reputation is tarnished. VeChain are developing solutions to minimize the risks associated with single point of failure (SPoF) such as the QuadrigaCX case.
The development of the VeKey Based Threshold Signature Turnkey Solution is aiming to provide the users with a hardware wallet with off chain multi signature system.
VeKey Based Threshold Signature Turnkey Solution
The VeKey Based Threshold Signature Turnkey Solution was launched during the 2019 VeChain Summit held at the end of April. The announcement on Medium explains that the system will provide its users with a secure private key management services through its hardware device.
The system is a combination of hardware and software developments that allows the management of digital assets through a distributed private key system. (See below)
VeKey based Threshold Signature solution
The growth of Singapore based VeChain is strongly impacted by the focus on enterprise and institutional use of the blockchains.
The VeKey hardware solution
The recent developments on VeChain offers a unique risk preventing measures associated with SPoF and other security concerns. The hardware and software threshold multi signature system does not compromise on security despite sharing the private key across the multiple encrypted parts.
“With the above-mentioned hardware and software-based security measures in place, this Solution ensures the security of the private keys and enable secure identification of the private key holders.’
Benefits of the VeKey Solution
The users of the VeKey solutions will enjoy the secure nature of the wallet and also the multi signature functionalities. The multi signature feature allows the users to select a predefined number of VeKeys needed to recover the private key to use your funds.
This prevents cases of misappropriation of funds and no single key holder will access the funds without the predefined number of keys.
Furthermore, the solution minimizes the risk of losing your funds due to loss of the private key as it can be recovered by providing the predefined number of keys.
Further developments on the VeChain ecosystem
The recent technical developments are part of the massive steps VeChain Foundation is taking towards growing the platform. The partnership with Deloitte, one of the big four audit firms shows a bright future ahead for the blockchain. Deloitte, along with the other audit firms are taking up blockchain technologies as the field grows to several sectors of the economy.
“This is a massive achievement for our EMEA Blockchain Lab, VeChain and the DNV GL platform. We are #makinganimpactthatmatters and rolling out blockchain in production.” – Cillian Leonowicz, Director at Deloitte.
The move from Ethereum to VeChain Thor network is a move that was welcomed by the Director of Deloitte, Cillian Leonowicz. The audit company has been able to execute over 20 smart contracts per second on the VeChain platform in the past week.
Furthermore the company completed more transactions than Bitcoin during the past weekend as the move from Ethereum starts to pay off.