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Cryptocurrencies are the next big thing in mainstream finance. Each year more and more money is being pulled out of gold and poured into acquiring Bitcoin. And this is a trend that’s only going to continue.
According to JPMorgan, there has been a major shift in gold and digital currencies become increasingly popular as an asset class. This is a trend that crypto enthusiasts have been hoping for, for years now. However even as cryptocurrencies start to get recognition from mainstream financial giants, security is still a major concern.
Unfortunately, data breaches, theft, and losses cannot be avoided as most security solutions fail to outpace the innovative and intricate strategies that cybercriminals use to navigate through the tiny loopholes in the system.
Battling the problem
Cryptocurrency transactions are known to be autonomous and affordable. However, although they are great for anyone wanting to transfer funds without the hassle of going through banks, they’re not so good if you want to prevent unauthorized transactions.
When BBC journalist Monty Munford lost his crypto back in 2018, it happened so fast that he had no clue he was no longer sitting on his handsome pile of crypto. Sadly, he lost about £25,000 without even knowing that it was gone and with no possibility of recovering it.
Once a transaction is made and has been registered on the blockchain it cannot be erased, canceled, or reversed. So, it is next to impossible for the wallet owner to recover their digital assets. But not anymore thanks to BTCV’s revolutionary 3-Key Security Solution that has been able to turn things around.
By default, every BTCV transaction is delayed from being confirmed on the blockchain by 144 blocks. This gives users an approximately 24-hour window to react to any suspicious activity and cancel unauthorized or erroneous transactions.
How the 3-Key Security Solution works
BTCV, based on Bitcoin’s SHA-256 cryptographic hash function, was developed as a form of digital gold to allow users to store value. So, it is only natural that BTCV developers would look for an anti-theft solution that would provide wallet owners with complete authority over their funds and the tools to guard them. Right now, BTCV is the only cryptocurrency that lets users cancel and reverse any unauthorized transaction.
Let’s briefly look at the keys on which the whole solution is based before we go into how the whole process works:
• Standard Transaction Key
The Standard Transaction Key is generated along with each wallet. It mainly runs in the background to ensure the smooth operation of all transactions. Apart from functioning like an invisible layer of extra safety, it can also be used to recover the wallet in case of a security breach or technical issue.
• Cancel Transaction Key
The most intriguing among the three keys, this key allows users to cancel transactions. This has been made possible by regulating the number of blocks it takes to confirm the transaction on the blockchain to 144. It allows wallet owners to reverse a transaction within approximately 24 hours of a regular BTCV transfer.
• Fast Transaction Key
This key is necessary to perform Fast transactions. It can be used to execute a transfer in about 10 minutes, after one block is generated, allowing BTCV users to make quick transactions with trusted parties.
What happens when you make a transaction?
When a BTCV transaction is made, its status is registered as “pending”. If it’s not cancelled within 24 hours, which is an approximate time it takes to mine 144 blocks, its status will change to “done”. It is recorded on the blockchain as one transaction.
However, when the transaction is cancelled, this scenario is a bit different. The status of the initial transaction changes to “cancelled-done”, but there’s also an additional cancel transaction with the same status. In this case, there are two transactions recorded on the blockchain.
So, the 3-Key Security Solution does not change the immutable nature of the blockchain, but adds an extra security feature that allows users to cancel and reverse any unauthorized transaction.
As crypto becomes a more common asset, the risks of hacks also rise exponentially. Bitcoin Vault is the first to implement a system that makes it possible for users to reverse a transaction. The idea behind the 3-Key Security Solution promises massive adoption as it brings innovation that crypto enthusiasts have been waiting for since the dawn of blockchain.