Bitcoin Hardware Wallet Champions Security and Simplicity

Keeping bitcoins safe is challenging, and convenience is often sacrificed for increased security. This becomes a hurdle for those new to the world of cryptocurrency, as people are less likely to adopt a currency that is too difficult to keep secure. Cryptolabs aims to solve this problem with Case, a combination of convenience and peace of mind in a compact package.

“There’s no easy and secure way to use bitcoin. You’re either getting security, or you’re getting ease of use.”
— – Melanie Shapiro, Cryptolabs CEO

Shapiro was one of the numerous victims of bitcoin hacking, and after experiencing such a loss seeks to address the problems of security and usability. “I wanted to build something that wouldn’t scare off customers,” she said onstage at DisruptNY. “What if you built a device that looks like a credit card?”

That idea was the foundation behind Case. “I made my credit card my design model,” Shapiro explained. “It should look like a credit card, it should be as easy to use as a credit card.” The hardware wallet can be used for everyday transactions utilizing a small camera built into the device. While the wallet doesn’t have Near Field Communication, the camera can scan QR codes so any stored bitcoin can be safe and accessible no matter where you may be.

Modelling the hardware wallet on a credit card certainly becomes apparent on first glance. The device can fit into almost any wallet or pocket with ease. And Cryptolabs managed to fit a serious amount of security features into such a small space. “Case is extremely secure because it is built on top of a multi-signature, multi-factor architecture with no single point of failure,” the website states. Two of three keys are required for every transaction, and they are all equally safe.

Upon activating Case a private key is generated, and not a moment before. “We don’t generate that private key — the device doesn’t come pre-populated with a private key,” Shapiro said firmly. This key lives on the device along with a template to recognize the user fingerprint. Both of these factors never leave the heavily encrypted wallet.

“In the events that your device is compromised and for some reason your key is extracted from the device, that’s just one of three keys and you can’t spend anything.”
— – Shapiro

A second private key lives on the companies servers, which will only be used following biometric authorization from the device. Nobody will be able to access your bitcoin by simply having the wallet. “If the server-side database is ever compromised, an attacker would get encrypted fingerprints that they can’t decrypt since the keys to decrypt them don’t actually live on the server,” the website describes.

The third private key is generated and held by Third Key Solutions, an independent organization who offers consulting and cryptographic key management solutions for companies using digital currencies. Their mission is to enhance security through additional decentralization. The key is completely offline and the storage of keys is geographically diverse.

This third key only comes into play if the device is lost or stolen, meaning any bitcoin stored will be inaccessible and patiently waiting for a recovery to begin. Case customers will have the option to store the third key themselves, but this is only recommended for very experienced users.

For connectivity the wallet comes with a built-in GSM chip, much like a Kindle. This provides truly standalone access to your funds in over 100 countries, with free unlimited transactions. The GSM chip sidesteps wifi connection issues, and provides data access without a sim card.

The Case hardware wallet never has to connect to another device to be fully utilized, you can even buy and sell bitcoin for USD using a directly linked Celery exchange account. Upon release this will only be available to those with a verified US bank account attached to Celery, but the service will be expanding outside of the US in the future.

The battery life of the unit is expected to last between fifty and one hundred transactions, and it comes with an inductive charging station to rest on and replenish the device.

To add further peace of mind the entire system is currently being audited by the CryptoCurrency Certification Consortium(C4), a non-profit organization meant to remove all bias from safety analysis of bitcoin startups. They will then receive a certification in the CryptoCurrency Security Standard(CCSS) of Level 1, Level 2, or Level 3, with 3 being the highest possible level of security.

“We’re also open sourcing the software closer to the date of the shipment. We’re [currently] finishing the auditing process.”
— – Shapiro

Cryptolabs expects that Case will achieve a Level 3 certification in the CCSS as their system was designed with security as a top priority. 1000 pre-orders are currently being taken at a price tag of $199 per unit on their website, with shipping to begin this summer.

If all goes well in the coming months Case could easily change the landscape of prefered wallet choice. Going through such lengths to provide layers of security while still maintaining accessibility is truly remarkable. Addressing this problem could open the door for bitcoin and bring cryptocurrency out into the light of day.