Ecoinbank Exchange, which opened in May 2018, has integrated and became the world’s first cold wallet crypto exchange.Ecoinbank Exchange, which opened in May 2018, has integrated and became the world’s first cold wallet crypto exchange.
Crypto wallets are usually categorized into the hot wallet and cold wallet. A hot wallet is a wallet that is connected to the internet and due to the rise of risk of getting hacked via online, the usage of the hot wallet is becoming less frequent.
On the other hand, a cold wallet is a wallet that is separate from the internet, which can be inconvenient for transactions but are more preferred due to lack of access from hackers.
The exchanges that are using cold wallet cannot freely deposit and withdraw and are having problems with supporting a myriad of crypto coins. Due to this reason, the exchanges have used either hot wallet or third-party services such as BitGo. However, due to the rise of frequent hacking accidents, exchanges were once again desperate for countermeasure.
Meanwhile, Ecoinbank has developed and implemented a secure cold wallet solution and have been preventing the risk of hacking at the source. This wallet system is planned on being released as a wallet service via API.
Ecoinbank’s dual security wallet system has multiple private keys per address. When requesting a transaction, there must be a minimum requirement of keys to sign. This is one of the main mechanisms that protect crypto assets.
There exist three different types of keys: customer key, Ecointrust key, and backup key. On most occasions, only customer key and Ecointrust key will be used to carry out transactions. A backup key is reserved for disaster recovery.
Ecoinbank boasts of robust security with the double security system. Ecoinbank wallet system is also easier to use than other cold wallets because it uses API. Ecoinbank wallet also supports a multitude of crypto coins/tokens and has the ability to halt all transactions to reduce damage via the emergency stop button.
“Not only smaller exchanges, but also big exchanges are susceptible to hacking and have sustained serious damages.” Said an Ecoinbank staff. “I wish to see other exchanges to implement cold wallet system to establish a secure exchange system.”
“The government also knows there is a rise of interest in the crypto industry,” he added. “I hope that cryptocurrency will become a safe asset in the near future.”