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For those who might be a bit confused...... This feature will not make your coins more secure or prevent coinbase from being hacked. However your coins will mo
by elorm 9y ago
For those who might be a bit confused......
This feature will not make your coins more secure or prevent coinbase from being hacked. However your coins will most likely be moved to "Cold storage" which will make your coins extremely difficult to steal in the event that either coinbase or your account is breached.
As far as cryptocurrency exchanges go, Coinbase is among the most secure, practicing what they call "Paranoid Security".
Brian has written about it in the past.
https://engineering.coinbase.com/how-coinbase-builds-secure-infrastructure-to-store-bitcoin-in-the-cloud-30a6504e40ba https://engineering.coinbase.com/how-coinbase-builds-secure-...
- eugeniub 9y agoIf it makes your coins extremely difficult to steal in the event that either coinbase or your account is breached, isn't that by definition making your coins more secure?
- bhouston 9y agoWhat happens if cold storage burns down.
- robtaylor 9y agoit becomes quite warm storage
- anaganisk 9y agook that brokw the Ice :D
- Guvante 9y agoBackups are important whether the thing being backed up is online or not.
- elorm 9y agoI don't believe they use the traditional cold storage methods anymore(Usb/Device in a phyiscal vault or paper in a physical vault etc). They generate the keys offline and split the keys using a secret sharing method among a quorom of keyholders. So they are geographically dispersed and if one subset on keys were to be lost, there's still a possibility of regenerating by obtaining the other sets from the Quorom
- toomim 9y ago> This feature will not make your coins more secure It does make your coins more secure, by requiring 48 hours and additional confirmation emails before they can be withdrawn. If a hacker manages to get your password and (if enabled) the Google Auth app on your phone, they will now additionally have to wait 48 hours, while you are receiving email warnings about the withdrawal, before they can withdraw any of your vaulted coins.
- kwelstr 9y agoAdditionally, they will have to wait until January to get your bitcoin cash from the fork! </s>
- aianus 9y agoThis is incorrect, customer funds go to cold storage regardless of whether they're in a vault or wallet. This feature is intended to protect against account takeover, not the Coinbase hot wallet getting hacked. (I worked at Coinbase a little while back)
- Nydhal 9y agoWhat kind of software engineers are they hiring? I'm senior CS student and want to work in this space (crypto). Could you recommend any subject to dive into?
- aianus 9y agohttps://www.coinbase.com/careers https://www.coinbase.com/careers I'm sure crypto projects and experience are a plus :)
- elorm 9y agoYou seem to misunderstand my statement. Let me explain a little further please. Your coins are not safe/secure while they are with coinbase, and will never be because you do not own the private keys. It does not prevent you from losing your money in the event of worst case scenarios, it just makes it harder for someone to steal your money while it is in the care of coinbase.
- aianus 9y ago> However your coins will most likely be moved to "Cold storage" This is the part I was responding to. It sounds like you're saying that using the vault feature will move your coins into cold storage. In fact, they were always in cold storage.
- tmlee 9y agoIf I recall correctly, vault is used for them to plan how much coins to store between cold storage and hot wallet. Not just an account level authentication.