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The question still comes up is crypto too complex for the ‘average user’ to understand?
The answer seems simple. Bitcoin quickly became a cultural phenomenon appearing in rap songs and movies and was subsequently adopted by national governments and large corporations.
It’s safe to say people understand.
Until now, users have happily used custodial exchanges to hold their digital assets when they don’t have the right hardware devices or living arrangements to hold their own.
Many others successfully store digital assets on a secure mobile phone without any problems.
It’s clear that people are figuring out how to not only buy and sell digital assets, but also how to store them.
So the question may be less about whether or not crypto is too complex, and more about whether or not our technical education worldwide is sufficient for the modern age.
Is crypto too complex for most?
The older generation is skeptical of new technology and prefers to stick with banks with deposit insurance or crypto ETFs (exchange-traded funds).
That is the world they have always known, and it has served them well. They see no reason to change their ways now. But ETFs are not the world of tomorrow.
Young people understand digital assets. They are digital natives. The concept of digital assets is not foreign to them.
The industry can always use more education, especially free technical information for the unbanked.
But around the world, individuals from all walks of life have successfully adopted Bitcoin and digital assets.
The industry must continue to create free educational content for distribution on social media, as it has done so well thus far.
Storing Bitcoin doesn’t have to be complicated
There are quite complex ways to store Bitcoin. Some large power stations use a Faraday cage with an electromagnetic shield to prevent RF (radio frequency) leakage.
On the other hand, some people use very little security. They store their digital assets on their smartphones or even laptops.
Ultimately it’s about finding a good balance. You have to ask yourself, “What works for you?”
Everyone has different risk models when storing Bitcoin
Different individuals and/or entities will have different risk models and preferences when it comes to storing Bitcoin and other digital assets.
For many people, increased technical complexity could make things less secure rather than more secure.
Therefore, individuals will need to find a good place where they are satisfied with the security and easy access to their digital assets.
If someone were to use too complex a system, they risk losing coins due to their own mistakes. You shouldn’t chase safety and add complexity beyond your skills.
The main question to ask is whether their installation is safe or not.
Each individual must assess for himself the risks he faces due to external factors and his technical skills And also the skills of those who will inherit their stock.
The vast majority of digital asset holders do not have the technical expertise to implement highly complex storage strategies.
If the industry confuses people with overly complex security settings, they will be forced into custodial exchanges, which defeats the entire purpose of Bitcoin.
On the other hand, if people try storage configurations that are too complex for them then they risk losing their coins.
Backing up a non-custodial wallet
Perhaps the most important aspect of storing Bitcoin in a non-custodial wallet hot or cold is to consider how wallets are backed up and how those backups are stored.
A wall or floor safe offers sufficient security for many people as long as others do not know that you own Bitcoin.
If people know where you live and that you also own Bitcoin, then you are at greater risk and should take that into account.
Simply writing 24 English words on a piece of paper is one way to backup your hardware wallet, but there are additional steps you can take to ensure your own protection.
Be sure to laminate the paper seed so it is protected from moisture. You can also put it in a sealed, sealed envelope to ensure that no one has access to the seed phrase.
A greater risk than having your seed phrase stolen is losing it or losing it to moisture or some other natural disaster.
Some common threats to consider include fire, floods, termites eating through paper backups, etc.
Most attacks on cold storage devices involve access to devices. Even then, most such attacks don’t work.
The biggest risk users face is not properly backing up a hardware wallet or making the instructions too difficult.
Can I use a mobile phone to store Bitcoin?
If you can’t get a hardware wallet, the next best option is a mobile smartphone, which is likely to have a secure element in the form of a security chip used to store particularly sensitive information that can only be accessed by an authorized program.
This security chip provides isolation in a mobile operating system (operating system)
A clean installation of a mobile phone’s operating system which is able to keep track of updates from the manufacturer is generally more secure than a laptop and probably the most secure device you own.
Additionally, mobile phones include secure authentication methods including biometrics, PINs and more.
From there you can install a BIP39 compliant hardware wallet using a backed up mnemonic.
BIP39 is an open source protocol to standardize the means of creating and backing up a digital asset wallet with a mnemonic.
Choose a mobile wallet with smart privacy and cost management features.
If you don’t have a mobile device, it may be safer to use a custodial exchange because desktops just aren’t that secure, honestly.
What does the future of Bitcoin security look like?
In the future, the digital asset industry may settle for a standard that uses a social sharing mechanism to achieve secure storage.
Such a procedure involves a mnemonic divided into multiple shards reaching a quorum of three out of fifteen, or a hierarchical system in which some shares are more valuable than others.
We share these pieces with our families and become each other’s guardians by safely storing shards of each other’s mnemonics.
This social mechanism would depend on a network of friends and family. The reminders can be chiseled into the steel.
Kadan Stadelmann is a blockchain developer and operational security expert Komodo platform‘s head of technology. His experience includes working in operational security in government. Kadan started his journey into blockchain technology in 2011 and joined the Komodo team in 2016.
Generated image: Midjourney
Credit : dailyhodl.com
