Bitcoin vault service provider Elliptic has partnered with the developer-focused Bitcoin platform provider Gem to further enhance the security of their multi-signature wallets. Elliptic made an official announcement regarding the same on its twitter page today.
Generally, a multi-signature Bitcoin wallet needs three unique private keys for the authorization of a transaction. The owner of the wallet holds two of these private keys while the wallet provider holds the third.
As per the information conveyed, Elliptic will act as a trusted and independent third party to provide insured storage of the third (backup) private key. In a deviation from the common standing, the three keys will be each distributed between Gem, Elliptic, and the owner. In case, the client or the owner loses his private key, the two Bitcoin services company will use their private keys to transfer funds into a new account. This is intended to provide clients with a higher level of security than can be achieved through a single multi-signature provider.
Nathan Jessop, Analyst at Elliptic commented that, “At Elliptic, our focus is on bringing bitcoin to the enterprise by developing secure and convenient products and processes. By combining Gem’s API platform with our insured and accredited key storage service, a new bar has been set for multi-signature wallet security and usability.”
Gem CEO, Micah Winkelspecht, said: “This is a major leap forward for multi-signature technology. Now clients can rest easy knowing that even if they lose their private key, they can rely on two independent parties to secure their assets. Elliptic is the most trusted name in private key storage and our tight integration means that there is no single point of failure for Gem’s multi-signature wallets.”
The Bitcoin community surely hopes to receive an advanced, high-security product from the two leading fintech companies in the domain.
