The buzz around the recent Ledger case has sparked concerns about the security of crypto wallets, particularly focusing on the reliability of cold wallets. Not only are their different types juxtaposed, where the differences are clearly perceptible even for an averagely versed user, but the focus is now solely on cold wallets – considered the safest so far.

Once again it turned out that in the realm of digital wallets and the protection of our valuable assets, security takes center stage. With this in mind, let’s explore the key notes that shed light on the vital topic of digital wallet security.

Cold is not enough

For the record, a cold wallet is an offline wallet that is usually provided by hardware – for example: Ledger wallet or Trezor wallet. Without access to the Internet, it guarantees an elevated level of security than a hot wallet, which makes it makes it an immensely stronger solution for safeguarding assets.

However, there are numerous examples of methods that hackers might employ to compromise cold wallets. There would be no story if there was a system entirely immune to hacking. What is more, in the blockchain realm, even the most advanced access can be the least protective against its user. This notion may sound disconcerting, but fear not, as further revelations await.

Eager to learn more about cybersecurity and blockchain technology? Soon we will launch our proprietary training series with industry-recognized authorities. Now you can influence it! Share your opinion to tailor the educational program to your needs and interests. Note that the survey is in Polish.

HEADS UP: survey participants will be granted a special discount! 
Complete the survey bit.ly/bitfold_survey.
Help us shape the future of blockchain technology.

With or without you

The exceptional emphasis on private key protection is a direct result of the decentralized nature of cryptographic assets. In the blockchain network, there is simply no intermediary institution involved in the process as a third party. On the one hand, third parties somehow guarantee the safety of these funds in the case of hacker attacks or other unwanted situations, but at the same time, they technically become their actual owners.

However, the landscape of cryptocurrencies presents a different scenario. Cyber thieves can thrive in this environment, capitalizing on the fact that virtual funds exist outside the bounds of conventional, state-regulated circulation. Here, the blockchain network unveils its other side, offering a level of pseudo-anonymity that is essentially unattainable in traditional banking systems.

This is why it becomes paramount for anyone venturing into cryptocurrency investment to view the safeguarding of their digital assets as a fundamental responsibility in this exciting journey.

As if from a movie

Some may recall a science fiction film from the 1990s starring Keanu Reeves, that revolves around a courier named Johnny, whose brain is implanted with a mnemonic device. Equipped with this, Johnny can securely store vast amounts of data in his mind, utilizing a mnemonic phrase as the key to access and retrieve the information. This extraordinary capability allows him to store and transport highly sensitive data, making him a sought-after target by various factions as the story unfolds, raising questions about the potential vulnerabilities associated with mnemonic storage.

The dystopian plot now smoothly transitions us into the realm of security devices. A mnemonic, also known as a seed phrase, or recovery phrase, consists of 12, 18, or 24 words. Setting up a mnemonic is a crucial requirement during the initialization process of a hardware wallet. The phrase plays a critical role, serving not only for wallet recovery, seed generation, and overall security but also for convenience, privacy, and deniability. Once set, it empowers users to securely store and restore their wallets, providing resilience against device loss, damage, or obsolescence.

Which came first

One minor distinction would be useful there, not entirely practical for the average user, but beneficial for those who want to understand the technology better. While considering two terms – seed and mnemonic – we notice using them interchangeably. Digging a little deeper, we can see that at the very beginning there is a mnemonic, not a seed. It is from the mnemonic that the seed is generated, and only from this seed are the private keys derived, as well as specific blockchain addresses in the next step.

Mnemonic acts as a human-friendly representation of the seed. In case a hardware wallet becomes unavailable or unsupported, users can extract their seed from the mnemonic phrase. This flexibility allows users to regain control of their funds even if the specific hardware wallet device or software is no longer accessible or maintained.

Let the dice roll

Alright, but where does the mnemonic come from? Let’s shed some light on the entropy source, which refers to the measure of randomness or unpredictability utilized to generate secure keys and ensure the strength of cryptographic systems. Extensive scientific research has demonstrated that humans are remarkably ineffective as entropy sources. Therefore, when generating a mnemonic, it is imperative to employ cutting-edge methods that harvest entropy from silicon-based devices.

For now, let’s just mention that true random number generators (TRNGs) are considered the optimal entropy sources, although not absolutely safe. Ideally, these generators leverage environmental factors like electric resistance or atmospheric noise to introduce additional randomness into operations. Now witness the true power of nature!

This topic warrants a more comprehensive exploration, which I encourage you to delve into through enlightening webinar of Rafał Kiełbus, our Head of Blockchain. You will find valuable insights, including a hint for self-generating mnemonics using dice, coins, or cards.

Shielding the core

Sounds obvious that what is most precious deserves multiplied protection. In some of the most security-advanced devices, a special chip has been used – a secure element (SE). Nestled within hardware wallets, it assumes the responsibility of safeguarding valuable data – our seed phrases and private keys. By leveraging the security features SE isolates the data from potential threats on the main device and implements robust access controls and cryptographic operations. With its deployment, you can forge ahead with confidence, knowing that our digital assets are shielded by an advanced layer of security.

However, it’s important to note that the effectiveness of a secure element relies not only on its design but also on the implementation, and adherence to best security practices throughout the device’s lifecycle, as well as – and that was the case of the Ledger firmware updates.

Foolproof range

The use of decentralized technologies has many advantages from the point of view of actual control over the accumulated funds. However, they shift the burden of care for security to the wallet user, which must not be forgotten when reaching for these solutions.

To mitigate the variety of risks, users should follow best practices such as securely storing backups of their mnemonic phrases, above all using strong and unique mnemonics, and keeping them confidential. Additional security measures like passphrase encryption or using hardware wallets with robust security features are strongly advised to consider. Users can significantly reduce the chances of mnemonic-related issues and potential backfires by being vigilant and proactive in safeguarding their mnemonics.

Power unleashed

In the persevering quest for digital security, there is one fundamental truth we must repeat like a powerful mantra: true ownership of our devices and assets lies solely with a properly generated and securely stored mnemonic phrase. It’s a golden key that grants us access to our cherished digital realm, rendering the possession of the physical device irrelevant.

Let this principle echo in our minds: once we possess the mnemonic, we hold the power to unlock all the stored assets, regardless of device ownership.

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The opinion expressed within the content is solely the author’s and does not reflect the opinions and beliefs of the website owners.

The post Seed is everything first appeared on Bitfold.

A while before Markets in Crypto-Assets (MiCA) comes into effect and at least a year before it starts being enforced, the European Union’s regulation on crypto-asset markets has generally been met with applause from the industry. Regarded as the most comprehensive regulatory framework for digital assets to date, the regulation introduces numerous general requirements for crypto companies – ranging from prudential measures and market integrity to consumer protection.

But, as always, it’s the smallest details that truly matter – as emphasized by Binance CEO Changpeng Zhao shortly after the vote in the European Parliament was held.

Not so right away

The first provisions concerning two out of three categories of crypto assets, namely asset-referenced tokens, and money tokens, will only be implemented with MiCA on June 29th, 2024. The remaining ones will be applied by the end of next year.

The regulation refers specifically to crypto services that are partially decentralized, whereas fully decentralized services conducted without intermediaries fall outside the scope of its provisions. Nevertheless, the objectives of the regulation include increasing legal certainty, reducing regulatory decentralization in national systems, and enabling the introduction of cryptocurrencies through a unified licensing process.

In the name of crypto

Crypto asset service providers obtaining a license in any of the 27 EU member states will be able to operate legally and under the same conditions in all other member states. Previously, crypto firms had to apply for registration in each country separately, often taking advantage of the fact that many countries did not have their own regulations in this regard. Operating in an unregulated environment often fell into the gray area, affecting not only consumer trust but also business stability.

The European Union’s policy seems consistently focused on subjecting cryptocurrencies to precise regulation, enabling their coexistence in circulation alongside traditional forms of currency. Consequently, the regulation introduces various requirements, with particular emphasis on asset-linked crypto-assets and those categorized as e-money.

MiCA exerts regulatory pressure on entities involved in virtual assets while challenging the perception of cryptocurrencies as highly risky. By protecting clients from market threats, it will provide the opportunity to foster trust in cryptocurrencies. Furthermore, despite MiCA’s scope is limited to the EU, its impact extends far beyond. It establishes the European Union as a frontrunner in navigating the intricacies of this field and offers a regulatory framework that holds global significance, paving the way for ongoing enhancements worldwide.

Challenges still ahead

Despite its comprehensive nature, the MiCA regulation has certain limitations and areas of concern. Among the weak points, the lack of regulation of investment tokens can be considered a downside of the proposed regulation. If there are no national legal standards governing the issuance of investment tokens in each country, the issue of such assets will still be problematic.

Additionally, although the environmental impact of blockchain technology was expected to be addressed in the MiCA regulation, there was no introduction of a prohibition on the Proof of Work (PoW) consensus mechanism that is widely used by many projects, as initially feared.

Hit the road

Has the MiCA legislative process come to a close, or is it just the starting line of a long-distance endurance run?

To businesses, waiting for its implementation is definitely not the recommended course of action. Crypto firms are advised to start preparing for MiCA ‘Now – perhaps even yesterday,’ emphasized the Head of EU Policy at Chainalysis as she delves into the consequences of the legislation.

As is often the case when regulating innovative industries, a question arises about the extent to which the pursuit of increasing consumer safety may unintentionally restrict the development of market projects. Instead of encouraging innovative enterprises to seek opportunities in Europe and compete with America and Asia, there is a concern that these regulations may lead them to explore more liberal economies elsewhere for implementing their solutions.

Are we included?

As mentioned earlier, the new obligations and the need to adjust to the requirements, such as obtaining a permit for cryptocurrency exchange offices or implementing contracts with clients that prevent anonymity, apply to partially decentralized assets and services. However, the storage of private keys, which is the purpose of the Bitfold device, falls outside the scope of the MiCA regulation. To this point.

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The opinion expressed within the content is solely the author’s and does not reflect the opinions and beliefs of the website owners.

The post MiCA: ‘The fine details will matter’ first appeared on Bitfold.

Is there a potential backdoor in Ledger’s hardware? With the recent introduction of the Recover service on their crypto wallets, concerns have been raised regarding whether Ledger allows such access. The cryptocurrency community is currently divided on whether this feature could provide a covert means for government agencies to access private coins without proper authorization.

The Bitfold experts also weighed in on the matter, stating that it inadvertently revealed the truth that the king is, in fact, naked. The hype surrounding this situation stemmed from people’s lack of deep understanding of the equipment’s architecture, leading them to overlook the fact that their keys ultimately remain under the control of the wallet producer. “Despite the keys being stored within the device, they remain under the control of Ledger’s software” – stated Radosław Szczygieł, Bitfold Hardware Architect.

In other words, the statement provided by the company that “a firmware update cannot extract the private keys” sounds legit; however, it was neglected to mention that “the updated firmware can do anything”.

What more do our experts think about this issue? We have scheduled an intervention webinar with the Bitfold team on Monday, May 29 at 20:00. Join our community for free participation. You will receive a link to the live event via email 15 minutes before it starts. Note that the event will be held in Polish.

To recall, the introduction of the Ledger Recover feature on May 16 has sparked such an unease and anger within the crypto community due to its option of using a controlled seed fragment as a wallet password for “trusted third parties.” Some members of the Web3 community claim that the service violates Ledger’s longstanding policy of ensuring that a user’s private key never leaves the device.

The purpose of this feature is to help users restore their mnemonic phrases and private keys using the Ledger device in case of loss or lack of access to the seed phrase. The firmware update allows cryptocurrency users to divide the seed phrase into parts and store them with three different entities: Coincover, Ledger, and an independent backup service provider.

Pascal Gauthier, Ledger CEO, reaffirmed that funds are secure, and that no backdoor has been created in their wallets. However, he stated that the government can access the private keys of users utilizing the Ledger Recover feature only if a subpoena is issued. This statement seems to have only added to the anxiety in the community.

After facing substantial media criticism following the announcement, Ledger has decided to postpone the launch and has unveiled an expedited open-source roadmap. The company now faces a considerable challenge in persuading the public that their primary goal is to offer users secure storage for their digital assets, all while maintaining transparency and verifiability throughout their operations.

Let the conclusion serve as a summary that balancing the distrustful nature of cryptocurrencies with the growing adoption continues to pose a huge challenge – as Ledger recently discovered.

Remember to join our community to receive a link and attend the discussion on this topic, scheduled for Monday, May 29 at 20:00.

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The opinion expressed within the content is solely the author’s and does not reflect the opinions and beliefs of the website owners.

The post Are your funds still secure? Ledger case first appeared on Bitfold.

Join us as Growth Marketing Manager

• 11.000-16.000 net – B2B
• 9.000-13.000 gross – contract of employment
  
  full-time, hybrid
  mid-level manager

Bitfold is an international technology start-up with headquarters in Switzerland. We are the company of global aspirations at the stage of dynamic scale-up. If you are self-driven, independent, hungry for growth and success individual – Bitfold is the place for you!

As a Growth Marketing Manager, you will work closely and directly with Bitfold leadership, the legal department, and other internal and external stakeholders. You will report to General Manager as an independent expert.

Key responsibilities

The general purpose of the role is to support the company with effective inbound marketing campaigns (digital and offline), enabling Bitfold to build and convert an engaged community of followers into a strong pool of prospective investors and clients. You will be tasked to:

• Create and lead the lively marketing strategy to establish a strong brand and grow our customer base across various audiences (B2C) and channels
• Identify relevant signals to trigger customer engagement and support the creation of new signals, e.g. set-up of tracking and automated follow-ups for webinars and emails
• Manage the day-to-day execution of marketing campaigns to build awareness, lead generation, nurturing, and qualification activities
• Implement comprehensive marketing strategies to support the company’s overall business goals and objectives
• Leverage marketing automation tools to ensure marketing efficiency alongside business scale up
• Collaborate with cross-functional teams, including product development, and legal, to ensure consistent messaging and branding across all customer touchpoints
• Ensure that all marketing activities are properly tracked, measured, and optimized for success within the defined marketing budget
• Analyze and interpret marketing data to make data-driven decisions and recommendations.

Key requirements

• a positive, can-do attitude,
• experience in technology product scale-up environment,
• experience in inbound marketing proven to build business growth,
• practical knowledge of marketing automation tools,
• 2-3 years of experience in managing and coordinating multi-channel marketing campaigns (both digital and offline),
• proficiency in building B2Crelationships,
• experience in working with external service providers(such as agencies),
• comfortable adapting to the latest technologies and working in a fully digital environment,
• strong analytical skills for understanding campaign analytics, drawing conclusions, and making recommendations,
• proactive, business-savvy, and independent, while also understanding and managing project risks and seeking help, when necessary,
• project management skills and familiarity with tools like JIRA and Monday,
• proficient English language skills at the C2 level.

We value candidates

• Self-driven, independent, hungry for growth and success
• Ready to take the challenge of leading a scale-up marketing effort, paving the way for a bigger role in scaled-up organization
• Eager to experiment and open to taking advantage of the latest technologies such as AI (we provide access to openAI services such as Chat-GPTPlus)
• Equipped with a solid understanding of digital environment specifics, along with its associated risks and challenges (cybersecurity)

We offer

• An inspiring work environment that encourages individual initiative and decision-making!
• The chance to join a highly driven team that has developed a globally patented technology, set to revolutionize the global market!
• Opportunities to grow your career and role in the organization in line with business size growth
• A world-class organization, recognized by the EU for our innovative patents and technology solutions, with support in the form of R&D funding.
• Competitive salary and benefits that exceed industry standards.
• Motivation Program based on shares.
• Flexibility in our work approach, emphasizing task completion over time-based expectations.

About us

At Bitfold we are driven by a powerful mission: to empower individuals with greater freedom and truth by making blockchain and cryptography easy to use and extremely secure. With our patented breakthrough technology and the backing of a generous research grant, we are well-equipped to turn our ambitious vision into a reality that will shape the future of digital asset management.

The groundbreaking Bitfold project is set to revolutionize the way we authenticate and securely store digital assets. To achieve this, we harness our cutting-edge, patented technology. Our dedicated team is poised to make a significant impact in the technology landscape. Together we delve into the exciting frontiers of blockchain, NFT, Metaverse, Web 3.0, DeFi, and cryptocurrency. Don’t miss the opportunity to be part of this game-changing endeavor!

The post Growth Marketing Manager first appeared on Bitfold.

Investor’s POV

Interview with Adrian Slany, Bitfold investor, involved in international industry and trade since 2003. Co-owner of technology, trade, IT, and real estate development companies. Since 2019 a user and accidental investor in the blockchain industry. Constantly looking for new interests and challenges that drive him to action.

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AGNIESZKA KOŻAŃSKA, BITFOLD: Does investing excite? Or maybe there is a more appropriate word to describe your personal approach to venture capital management, equal to maneuvering between certainty and unpredictability?

ADRIAN SLANY, BITFOLD INVESTOR: I would rather say that investing motivates me to take action. This is related to my nature and character, as I don’t like to stand still. I believe that the most important thing in business is to broaden our horizons and increase our knowledge and skills so that we become more aware of what is happening around us. Only then we are able to make more thoughtful choices and decisions, and at the same time, we become a tougher opponent in negotiations.

A conscious approach to investment, i.e., understanding what I invest in as well as how much is being invested helps to reduce risk. To some extent, this allows me to manage venture capital wisely and helps to maintain mental peace.

Do you believe that investing is all about a particular mindset?

That’s true. I can tell from my own experience and observation that there are five main factors here, four of which are solely related to the character, personality, and upbringing of a particular person. I mean the propensity to take risks, commitment, determination, and analytical skills. These traits shape the way a person thinks.

Then there is also just pure luck, which we help ourselves by taking our own actions. A good example here will be our meeting in 2019 with Jakub Żurawiński, whom I met by chance while working with the law firm he represented then. During our conversations, we noticed that we were both interested in blockchain and the cryptocurrency market, which I discovered by chance as well. But that’s another story.

I remember preparing Bitfold for the previous funding round and us fiercely discussing what in fact attracts our future investors. How to engage them and, on the other hand, what discourages from putting their money into the further development of our product. What was on your own checklist before entering in?

Before entering the Bitfold project, we took into account several aspects, namely the market for hardware and software wallets and, consequently, the technology itself. This refers to the strengths and weaknesses of a given product as well as the market share of a given technological solution and directions of development in the coming years.

I recall the following on the list: people whom we invest in, i.e. how the team looks, the experience and skills of individuals plus the division of tasks and roles in the project. Next, attention paid to the security and protection of the developed technology manifested in patents. And finally, some obvious factors such as business scalability, margin, and investment return.

Being an entrepreneur in the technology industry, you are to know the realities and market data perfectly well. You have probably encountered many business- and people-related difficulties on your way. As an angel funder, what convinces you more in emerging enterprises: people behind the core concept, or just numbers?

I can be brief: of course, the numbers are essential. But business is people and, in my case, the businesses I’m involved in were created right through shared contacts and interests. What we do and whom we do it with should give us satisfaction and motivation in life.

Let’s take a peek behind the veil. Will you tell us what set of rules you follow when making investment decisions? A kind of private decalogue in this regard?

First of all, I’m not looking for investments just for the sake of it. Much is said about intuition or gut feeling in business, which is a “no-go” for some business mentors, but for me, it is an essential aspect when making business and life decisions. So, if there is an idea or product that catches my attention, I start to get interested in it and verify it while expanding my knowledge on the subject.

If I had to list a few rules depending on our life situation and the world’s economic circumstances, as well as the commercial aspects of the investment, these would be:

1. Don’t try to be someone you’re not.
2. Invest only as much as you can afford to lose without significantly impacting your life.
3. Take the time to understand what you are investing in.
4. Get to know the people you are investing in.
5. Remember where you started and where you come from.
6. Minimize risk.
7. Don’t be afraid to make changes and tough decisions.

What made you consider investing in innovative businesses like ours?

When it comes to innovations, Bitfold is the first venture that caught my attention and interest. I have worked in the engineering industry, trading, and real estate branches. Due to my interest in blockchain, the crypto world, and all the challenges there, I decided to support this highly innovative product. The main argument in favour was that it addresses major security issues in transactions and storage of digital currencies and other assets.

Your investment portfolio includes other blockchain projects. When and why did you start researching the industry? What particularly inspired you about this technology?

There are several promising projects in this industry that I’m interested in. I support them because they provide people with a certain degree of independence compared to the well-established traditional world of finance. This opportunity to stay independent, to be the master of your own fate, and at the same time your own bank resulted in the fact that since 2019 I have been devoting more and more time to projects in this field.

Of course, the industry itself empowers us with even more possibilities, such as digital NFT files used to personalize products, which we can record, store, and trade. First-hand example – artworks transformed into digital files. We also have the gaming industry, which is highly involved in this area, as well as recently admired AI projects. Therefore, I’m sure that our future will be inseparably linked with blockchain.

Having placed such hope there, you are surely wondering how the future will unfold. What opportunities do you see ahead, and what kind of threats?

I have already addressed this in terms of possibilities. Still to be referenced is the decision-making independence – to be achieved at the expense of greater risk, due to making middlemen redundant as an example.

Generally, I’m pretty sure the industry should completely transform the financial world as we know it. Compare it to the early internet in the 90s – as the blockchain industry is blooming these days, as was the internet back then. The market is still non-sufficiently regulated, which naturally attracts many people and companies bent on easy loot. That is why harmful scams continue to appear, undermining the credibility of the entire industry.

This could effect in a convenient excuse for the institutions to centralize the market. From one point of view, regulation may trigger a stream of funds flowing from the existing financial world, and consequently, increase the scalability of many projects needed to grow the industry. But on the other hand, following this path we are quickly moving away from what blockchain and bitcoin were created for.

We all notice almost every day how tough times the business operates right now. Once a pandemic, then a war, and now the specter of a global recession that keeps appearing. Is this clearly inappropriate or rather quite a favorable time to invest?

I think opportunities always arise and it doesn’t matter what times we are in. It all depends on what we want to buy and for how much, what is the actual state of the asset, and how we calculate the return rate. Certainly, in times of recession, it is better to have more cash for purchases, as there are more opportunities to acquire lucrative assets, but still, we always must calculate the risk. Historically speaking, money is more expensive at harder times, and then the investment rate of return decreases consequently.

Thank you for sharing your experience. All successful investments!

The post When investing, don’t try to be someone you’re not first appeared on Bitfold.

The post Ethereum: The Merge. Moving consensus to PoS first appeared on Bitfold.

Crypto adoption – how does it matter?

Fear has once again frozen the crypto market in May 2022 when bitcoin’s price plummeted drastically in the fifth major reset to date (read more: “History doesn’t repeat itself…”).

The post Crypto adoption – how does it matter? first appeared on Bitfold.