Twitter Jack Dorsey, the CEO of Square Inc., has revealed that his digital-payments company is considering developing a Bitcoin hardware wallet, which is an offline cryptocurrency wallet that isn’t connected to the internet but holds the digital currency.
Hardware wallets are the safest way to store cryptocurrencies and are used by cryptocurrency investors who want an extra layer of security over soft wallets like web-enabled devices.
Cryptocurrency wallets allow users to store coins and include a public and private key that serves as a blockchain a6ddress. Hackers have mastered sophisticated methods of stealing cryptocurrencies, such as taking control of someone’s phone in order to gain access to the private keys required to move Bitcoin, Ether, and other digital assets.
In a tweet on Friday, Jack Dorsey, the CEO of Twitter Inc. and a vocal proponent of Bitcoin, announced the plans.
“If we do it, we’ll do it completely in the open, from software to hardware design, and in collaboration with the community,” he added. We’d like to start this discussion off on the right foot by sharing some of our guiding principles.”
Aside from that, he outlined some elements that must be considered during the development process. He discussed a variety of topics, with security being the most important. He also mentioned that self-custody might be less complicated than it is now. He went on to say that because mobile devices are a part of our daily lives, the wallet should be accessible via mobile as well.
Cash App, a mobile payment service available only in the United States and the United Kingdom, is one of Square Inc.’s most popular products. With the existence of Cash App, it is expected that the product will include a cryptocurrency wallet feature. According to the CEO, however, it is “only part of the solution.” A custom-built app is likely required for a smooth experience, but it does not have to be owned by Square.”
This year, Bitcoin, Ether, and a slew of other cryptocurrencies soared to new highs before plummeting by roughly half their value. Banks, corporations, and financial institutions are becoming more comfortable dealing in cryptocurrency, and the market has seen a surge in customer demand. Corporations that hold Bitcoin on their balance sheets include Tesla Inc., MicroStrategy Inc., and Square.
What does this imply?
Adding a hardware wallet to those existing services could increase customer loyalty to Square and provide easy access to cryptocurrencies; however, because Cash App is only available in two countries, it may not necessarily help with mass adoption.
It’s also worth noting that, despite their enhanced security, hardware wallets can be hacked to divulge the device’s PIN code. However, this will only be achievable if a hacker has gained access to the hardware wallet.
As of FridayCEO, Square Inc. (SQ) was trading at $213.69, up 1.07 percent, while Twitter (TWTR) was trading at $59.00, up 3.49 percent.