Coinbase launches cloud storage! Coinbase, a popular cryptocurrency exchange, has launched a new feature for its stand-alone digital asset wallet. This software will allow users to back up their private keys using either Google Drive or iCloud.
The idea is to give users of Coinbase Wallet a safety net in the event that they lose the device that they’ve saved their cryptocurrency wallet or if they lose their private keys somehow. While this feature is certainly beneficial to users insofar as accessibility to their funds, those same reasons are being cited as potential threats that can expose a user’s funds.
Coinbase is one of the few exchanges to launch its own wallet software. Users of the Coinbase Wallet are the sole holders of their private keys – as such, they totally own their tokens that they hold in the wallet. This is a much safer alternative than leaving money on centralized exchanges – the same type of exchanges that are targets of hacks and security attempts.
The latest feature allows a user of Coinbase Wallet to back up their private keys to the cloud, either with Google Drive or iCloud. According to Coinbase, copies of the private keys stored on the cloud will be encrypted and will require the wallet’s password to access. Coinbase will not have access to the passwords or the funds at any point with the wallet. They also made sure to iterate that the cloud service provider will not have access to either due to the keys being backed up via password. Coinbase reiterated the importance of 2FA as a secondary security precaution.
Not everyone is enamored with this move by Coinbase, however. WhalePanda, a twitter account, has bashed this new development on Twitter. But proponents of the cloud storage argue that this is a necessity to help widespread adoption in the cryptocurrency sphere.
What do you think? Do you plan on buying and storing on the cloud service via Coinbase? How do you store your cryptocurrencies? Have you read our post on how to protect yourself from SIM swapping? Let us know what you think on our Facebook page!
