Jack Dorsey, the founder of Twitter, has launched his own Bitcoin hardware wallet named “Bitkey” via his financial payment processing company, Block Inc. Find out how Bitkey works and how it offers an innovative and secure solution for managing Bitcoins, with an overview of its 2/3 multi-signature system.
Jack Dorsey launches his hardware wallet “Bitkey “
Block Inc, the financial payment processing company co-founded by Twitter creator Jack Dorsey, launched its Bitcoin-only hardware wallet, dubbed “Bitkey”, on Thursday.
What is Block Inc.? Behind Square, which markets payment terminals, and Cash App, a financial services platform, Block is also deeply involved in the Bitcoin community. In 2023, the company recorded sales of $5.62 billion, including $45 million in Bitcoin revenues, and sold over 2.42 billion BTC to its customers.
Not your keys, not your wallet, as they say
– Elon Musk (@elonmusk) December 7, 2023
Even Elon Musk, owner of X, joined in the Bitkey launch. He caused quite a stir among Internet users by awkwardly taking up the famous expression “Not your keys, not your Bitcoins”, transforming it into “Not your keys, not your wallet”.
This expression is commonly used by the community as a reminder that keeping one’s cryptocurrencies on exchange platforms exposes one to the risk of losing them in the event of malfeasance or platform bankruptcy. In a way, it justifies the use of a hardware wallet by highlighting that if we don’t own the private keys to our wallets, then we don’t really own our BTC.
What are the features of a wallet?
This innovative wallet features a 2/3 multi-signature system, i.e. a wallet that needs the signature of at least 2 of the 3 keys to validate a transaction. Bitkey consists of a key in the mobile application, a key in the physical wallet and a key in a server.
The physical Bitkey wallet works in tandem with the mobile application. It unlocks with a fingerprint and connects to the phone via NFC technology, eliminating the risks associated with connecting to a computer. The 2 keys can be used to co-sign transactions and adjust security settings.
Bitkey lets you define a maximum daily transfer amount. Beyond this limit, transactions will be signed by both the mobile application key and the server key, thus combining the 2 minimum signatures.
The server that holds the 3rd key is managed by Block. It has 2 main functions: to enable Bitcoin to be sent below the set limit without needing to carry the Bitkey with you, and to facilitate the recovery of one or both of the 2 keys in the event of loss. Block specifies:
” Customers have control over 2 of the 3 keys using the mobile app and the hardware device. Block, the company that builds Bitkey, manages the third key to help customers recover access to their funds in the event of the loss of one – or even all 2- of their keys, and to co-sign transactions up to a limit pre-authorized by the customer, allowing them to keep their hardware and phone separate for small transactions. “
Bitkey is already available for pre-order, at €145 excluding tax and delivery charges, with delivery scheduled for February 2024.
