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When they say vaults, they're actually vaults. 98%, according to them, of their funds are stored offline. The only attack vectors are cryptographically, which
by IkmoIkmo 9y ago
When they say vaults, they're actually vaults. 98%, according to them, of their funds are stored offline.
The only attack vectors are cryptographically, which you can pretty much rule out (safe for human error), and some kind of human attack. (blackmail, social engineering etc) But there's procedures in place there, too. The offline keys are multi-signature, requiring multiple executives in multiple locations to clear industry security protocols, then come together and commit a crime.
The remaining 2% of online funds are insured.
If anything goes wrong, it's extremely likely to be on the customer side. They offer the usual secure connections, multisig etc, and the vault adds an extra 48h withdrawal period ontop.
If you know the basics of bitcoin's cryptography, it's pretty trivial to store bitcoins on private keys that never saw the light of day, using a bunch of dice and an offline open source bit of software. But if you have to use a service, I'd say Coinbase is pretty damn secure. Just make sure your side's clean. Accessing secure systems from compromised phones/laptops is a losing battle, and as there's no real recourse with bitcoin, that's usually where things go wrong even when using secure services.
- s17n 9y ago> If anything goes wrong, it's extremely likely to be on the customer side. Since this is also true of their ordinary wallet product, I think "security theatre" isn't totally unfair here. The only thing this really adds is the 48 hour delay.
- thinkloop 9y agoAnyone have any idea of the specific mechanics they use to withdraw from the vault? Do several executives meet in a special room at a certain hour, with their keys on paper/usb, and type them into an air-gapped machine one-by-one? I wonder how they handle a lost key, do they have to move $1 billion+ of Bitcoin to a new wallet each time?
- gst 9y agoThere are a lot of things outside of technical issues that can go wrong - here's an example: https://www.reddit.com/r/CoinBase/comments/6hcu0n/coinbase_cuba_lawsuit/ https://www.reddit.com/r/CoinBase/comments/6hcu0n/coinbase_c... If you have control over your own keys (such as in the case of the "old" Coinbase vault) those things are a non-issue. But with the way how the new vault works a hardware wallet looks like a better solution.