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The HSM Based Key Escrow Turnkey Solution By Vechain

By Rafał - 2019-05-04

Despite the awareness of the potentials of blockchain, there are still limitations to its adoption which has resulted in challenges related to introduction of the technology into various fields and industries to the point that some industry leaders have made statements regarding the universality of application of the technology.
Blockchain has already found application in international remittance, clothing line, food safety, supply chain, logistics among many more. One of the challenges users face is the complexity of wallets and its appurtenances such as mnemonic phrases that are not easily memorizable.
This has led to the need for escrow services to help in the management of funds for non tech inclined users. Even though there are existing firms offering third party private key custodial solutions, there is still need for improvement since most of the services are short of expectations as far as security is concerned.
Enterprise Asset Managment
source: https://medium.com/@vechainofficial
The traditional services available have low security barriers since it is comprised of a system that stores private keys as digital files using software protection.
There is no doubt that such systems are liable to tampering. This necessitates the development of a foolproof system, a quest that Vechain strived to accomplish thereby eliminating the need to call for digital files to complete transactions.
The need for impenetrable private key custodial service can be illustrated with the Mt Gox security breach of 2014 that resulted in the loss of 850,000 bitcoins valued at $473 million. The hack was caused by a compromised computer of an auditor of the company.
This highlights the need for an enhanced escrow service that ensures that private keys are not compromised. The Vechain HSM based private key escrow was developed as a solution to this challenge.
The Vechain HSM based private key solves the problem associated with the shortcomings of third party custodial solution. This was accomplished through a massive investment in research and development creating a HSM based private key escrow solution.
This approach to escrow solution is a breakthrough pioneered by Vechain. The project was launched in April during the Vechain Summit held in April.
More at: https://medium.com/@vechainofficial/vechain-launches-hsm-based-key-escrow-turnkey-solution-644043df5de1