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It's not theater. These features will do nothing if Coinbase is hacked but they can prevent your coins being stolen if someone compromises you.

by 0xdada 9y ago

billmalarky 9y ago
Moreover, Coinbase has insurance that protects your assets against Coinbase getting compromised (FDIC for USD and an insurance policy through Lloyd's of London for crypto). If _you_ are at fault for your account being compromised (ie someone steals your password) then you are not protected by these insurance policies. That's why this new vault functionality is so important, it protects your assets from personal negligence. With these new features, all your bases are covered.
- korzun 9y ago
  This could get hairy, very quickly. I thought Coinbase had insurance that only covered the online portion but not offline vaults, where most of the 'money' is stored? If an offline vault is compromised through their system then what? The promise of keeping things separate doesn't guarantee anything.
- mjhoyer 9y ago
  Not exactly. 'All digital currency that Coinbase holds online is fully insured. 'Coinbase holds less than 2% of customer funds online. The rest is held in offline storage.' They only insure less than 2% of their coins. This does nothing to protect private keys that go missing or are destroyed in their offline wallets. I would love to know that I'm wrong. https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured- https://support.coinbase.com/customer/portal/articles/166237...
  - billmalarky 9y ago
    I'm not associated with Coinbase so my knowledge extends to that same article you linked. You appear to be correct so far as the text of the article goes. In the future I imagine crypto wealth will be secured by breaking it into multiple wallets stored in vaults controlled by different organizations. That protects you from total asset loss due to institutional failure. And this type of failure isn't limited to crypto (see Bernie Madoff's hedgefund).

It's not theater. These features will do nothing if Coinbase is hacked but they can prevent your coins being stolen if someone compromises you.

by 0xdada 9y ago

It's not theater. These features will do nothing if Coinbase is hacked but they can prevent your coins being stolen if someone compromises you.

billmalarky 9y ago

Moreover, Coinbase has insurance that protects your assets against Coinbase getting compromised (FDIC for USD and an insurance policy through Lloyd's of London for crypto). If _you_ are at fault for your account being compromised (ie someone steals your password) then you are not protected by these insurance policies. That's why this new vault functionality is so important, it protects your assets from personal negligence. With these new features, all your bases are covered.

korzun 9y ago
This could get hairy, very quickly. I thought Coinbase had insurance that only covered the online portion but not offline vaults, where most of the 'money' is stored? If an offline vault is compromised through their system then what? The promise of keeping things separate doesn't guarantee anything.
mjhoyer 9y ago
Not exactly. 'All digital currency that Coinbase holds online is fully insured. 'Coinbase holds less than 2% of customer funds online. The rest is held in offline storage.' They only insure less than 2% of their coins. This does nothing to protect private keys that go missing or are destroyed in their offline wallets. I would love to know that I'm wrong. https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured- https://support.coinbase.com/customer/portal/articles/166237...
- billmalarky 9y ago
  I'm not associated with Coinbase so my knowledge extends to that same article you linked. You appear to be correct so far as the text of the article goes. In the future I imagine crypto wealth will be secured by breaking it into multiple wallets stored in vaults controlled by different organizations. That protects you from total asset loss due to institutional failure. And this type of failure isn't limited to crypto (see Bernie Madoff's hedgefund).