4 ms·

Looking at the two popular web wallets as an example. Blockchain.info and Coinbase. Blockchain.info is a client-side wallet implemented in JS Keys are encrypted

by sida 12y ago

Looking at the two popular web wallets as an example. Blockchain.info and Coinbase. Blockchain.info is a client-side wallet implemented in JS Keys are encrypted client-side and encrypted keys stored in the server. There are good good benefits there because if blockchain.info is hacked, your keys are still with you and not compromised (Different story if the server starts serving malicious JS though) The server-side wallet approach means that if their hot wallets gets hacked, all the funds will be gone.

dobbsbob 12y ago
A lot of casinos and exchanges are using blockchain.info as a hot wallet instead of rolling their own multi sig hot wallet. Crazy risk
adrianmacneil 12y ago
Generally server-side wallets don't keep all user funds online. Most are stored offline in cold storage, which requires multiple signatures to access.
- battani 12y ago
  They still have to keep at least the amount the richest user owns online in case that user decides to withdraw all their coins.