I'm assuming the vault doesn't improve security at all in the event that coinbase gets hacked and loses all of their btc?
They're all offline, stored in real safety deposit boxes and bank vaults...
Coinbase introduces Vault
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Re: Coinbase introduces Vault
#12I'm assuming the vault doesn't improve security at all in the event that coinbase gets hacked and loses all of their btc?
Probably not as much as they'd like it to.
Brian Armstrong, CEO of Coinbase once said in an interview (http://techcrunch.com/video/coinbase-founder-brian-armstrong...) that they are dividing their bitcoins in hot and cold wallets.
A hot wallet only contains about 5% of the bitcoins the company has. Meanwhile, the other 95% of bitcoins they're holding are stored savely in a key-split cold wallet.
Now, the problem is: if some user wants a large amount of his bitcoins out of coinbase, the guys owing their part of the split private key need to take action to transfer that amount of bitcoins from the cold to the hot wallet, assuming the amount is > 5%.
So what I think "Vault" does is give them a better architecture for planing and organizing their hotwallet-coldwallet-process.
Re: Coinbase introduces Vault
#13I'm assuming the vault doesn't improve security at all in the event that coinbase gets hacked and loses all of their btc?
What makes you so sure that Coinbase even has all of our bitcoin in the first place?
Re: Coinbase introduces Vault
#14I'm assuming the vault doesn't improve security at all in the event that coinbase gets hacked and loses all of their btc?
What makes you so sure that Coinbase even has all of our bitcoin in the first place?
I said all of their bitcoin. Coinbase certainly doesn't have all of my bitcoin.
I didn't intend to make a conspiracy theory out of my question.
Re: Coinbase introduces Vault
#15Earlier quoted context omitted.
What makes you so sure that Coinbase even has all of our bitcoin in the first place?
I said all of their bitcoin. Coinbase certainly doesn't have all of my bitcoin. I didn't intend to make a conspiracy theory out of my question.
The question means all of our Bitcoin at Coinbase. He's not making a conspiracy theory out of it - he's asking a legitimate question about whether or not Coinbase has all deposits accounted for or not.
Re: Coinbase introduces Vault
#16I'm assuming the vault doesn't improve security at all in the event that coinbase gets hacked and loses all of their btc?
They're all offline, stored in real safety deposit boxes and bank vaults...
The keys are stored offline, but the BTC are always online. They are relatively safe against someone compromising your computers remotely. Against physical intrusions or insider attacks, not as much.
Re: Coinbase introduces Vault
#17Is anyone else picturing the digital equivalent of this Al Pacino snl video? http://kristenwiigdaily.tumblr.com/post/27009841161/mygiftis...
Re: Coinbase introduces Vault
#18I'm assuming the vault doesn't improve security at all in the event that coinbase gets hacked and loses all of their btc?
That's a terrible assumption.
Re: Coinbase introduces Vault
#19How about fixing the web app before adding more features? Their Ajax page loading hangs most of the time. Going straight to the URL works immediately, but it's not always possible.
Re: Coinbase introduces Vault
#20Earlier quoted context omitted.
They're all offline, stored in real safety deposit boxes and bank vaults...
The keys are stored offline, but the BTC are always online. They are relatively safe against someone compromising your computers remotely. Against physical intrusions or insider attacks, not as much.
Physical intrusions can be dealt with by encrypting the keys, which I hope they are doing. Using a secret sharing scheme with physical tokens (e.g. smartcards) carried by chosen employees should reduce the danger of both of those attacks.