Will up-and-coming security companies be the key to Bitcoin's survival against an early downfall?
In the world of Bitcoin, mainstream consumer and business adoption has yet to be fully achieved. This is partly due to high-profile scandals such as Bitcoinica and Mt Gox, and a general lack of understanding about how Bitcoin works. However, a new wave of start-ups is addressing these security issues, with Gem leading the charge.
Gem, a forward-thinking company, is dedicated to making cryptocurrency safer and more accessible. By providing secure wallets that protect users from the complexities and risks of managing private keys directly, Gem is lowering the entry barrier for new users. This approach significantly reduces the vulnerability to hacks and user errors, two major obstacles to mainstream adoption.
The company often integrates multi-layered security protocols, including biometric authentication, multi-party computation (MPC), and hardware security modules (HSMs), to safeguard assets. This alignment with institutional-grade security standards observed in other advanced platforms is a critical step towards making Bitcoin a trustworthy method of making payments.
Other start-ups are following suit, integrating seamless security and usability features to enhance trust and ease of use for crypto wallets. For instance, Best Wallet combines 2-factor authentication and MPC security technology, providing a secure and user-friendly experience for everyday consumers.
Emerging identity verification solutions, like World’s biometric “World ID,” further demonstrate how start-ups are leveraging biometric authentication to strengthen security while simplifying user onboarding to digital currency ecosystems.
The combination of secure custody, regulatory compliance, and user-centric design positions start-ups like Gem to overcome traditional Bitcoin security challenges and help integrate cryptocurrency into broader financial systems and everyday user experiences.
While the Bitcoin community has adopted technologies that are a generation ahead of those still widely used in the traditional payments space, questions remain about the quality of implementation and security practices. The use of HSMs by service providers, like Gem, could help Bitcoin reach its full potential.
Richard Moulds, from Thales e-Security, has stated that new security measures are necessary for Bitcoin to be perceived as a trustworthy way of making payments. The Bitcoin community is taking a proactive approach to finding security solutions, with service providers in the Bitcoin industry needing to take responsibility for the security of the services they offer to deliver the same level of consumer protection as traditional banks and shops.
The adoption of new security measures, such as those provided by Gem, could bring Bitcoin to the mainstream and make cryptocurrency a trustworthy way of making payments. In fact, Peter Thiel, co-founder of PayPal, has stated that Bitcoin has the potential to change the world. With companies like Gem leading the way, this potential may soon become a reality.
Sources:
- Thales e-Security
- Gem
- Best Wallet
- World Identity Network
- Gem's secure wallet, integrating biometric authentication, multi-party computation, and hardware security modules, aligns Bitcoin with institutional-grade security standards, aiming to make cryptocurrency a reliable method for payments.
- To make Bitcoin a trustworthy choice for mainstream users, start-ups like Best Wallet are integrating features such as 2-factor authentication and MPC security technology, providing a secure and user-friendly experience.
