With over $1 billion worth of cryptocurrency being stolen since 2017, British security services firm G4S is taking it upon itself to try and make the wild west of cryptocurrency a little less wild.
The FTSE 250 listed firm is perhaps best known for providing security personnel, prisoner transport, and high-value money transport in around 90 countries. But it seems to think more can be done to store and protect high-value cryptoassets.
G4S announced on its blog this week that it is launching a new way to store your cryptocurrency to keep it away from the bad guys.
Over $1bn worth of #cryptocurrency has been stolen since 2017. Now G4S has developed an innovative new service offering high #security offline vault storage to protect assets from criminals & #hackers
— G4S (@G4S) October 17, 2018
“In collaboration with our client, our security solution is built on a foundation of ‘vault storage’. We not only take the assets offline, but break them up into fragments that are independently without value and store them securely in our high security vaults, out of reach of cyber criminals and armed robbers alike,” Said G4S’ senior risk analyst Dominic MacIver.
G4S did not explain how these fragments are created, and how they become valueless.
A spokesperson was tight-lipped about the specifics of how it works exactly, but did explain the system is designed in such a way that if somebody was to steal a storage device (which would be nigh on impossible), it still wouldn’t give them access to the valuable cryptoasset being stored.
According to the spokesperson storage vaults are similar to more traditional gold storage with many layers of security that must be passed before access is granted.
G4S claims this should be quick and easy if the client has all the relevant security clearance. While it may be far more secure, it will never be as quick as accessing your coins on a personal hardware wallet or hot wallet.
The security firm has also not made it clear who the secure vault is designed for. The spokesperson told Hard Fork that G4S’ security solutions are bespoke to each client, based on their individual requirements and risk profile.
Even so, storing digital assets in physical “high security vaults” doesn’t sound like an option for the budget minded hodler. It appears G4S is targeting long-term, high-value hodlers who won’t want to sell as soon as the market starts to dip.
If you’re a Bitcoin Whale maybe G4S’ offline storage is what you’re looking for. My guess is most of us are better off sticking with hardware wallets and smartphones for smaller amounts of coins, even if they might be a little less secure.
Published October 18, 2018 — 09:38 UTC