The largest US cryptocurrency company Coinbase has confirmed information about the recent movement of cryptoactive assets for large sums, reports CryptoGlobe.
As you know, the company plans to significantly expand the number of cryptoactive assets supported. For this purpose, they note in Coinbase, it is necessary to radically rethink approaches to the storage of funds on the platform, the sums of which amount to billions of US dollars.
In this regard, Coinbase transferred customer funds totaling about $ 5 billion to the updated vault. In particular, 5% of the bitcoins held by the company, 8% of the air and 25% of Litecoin were moved.
According to the head of security at Coinbase Philip Martin, planning the process of moving coins took about four months. According to him, a “fundamentally new architecture” was created “from beginning to end”.
“Regulators and auditors were involved at every stage. Most of all we were worried about not stirring up the market during this process. That is why so much time was spent on coordinating with regulators and preventing speculations in the media , ”added Martin.
At the first stage, a new key generation process was launched in October. During it, the Coinbase team went to a safe location, equipped with new computers, to print the keys, which were then divided into different parts.
“We take a private key and apply a cryptographic technique to it called the Shamir secret sharing scheme . This algorithm makes it possible to take part of the secret data and divide it into a certain number of parts , ”said a Coinbase representative.
After that, the keys are distributed between different safe locations. In this case, for their further unlocking, several Coinbase employees are involved, who communicate with each other by telephone.
Note that Coinbase is not the first company in the cryptocurrency industry that uses this approach. Earlier, BitGo's custodial service resorted to this kind of key segmentation.
Recall, the other day the American cryptobirge Coinbase Pro added support for Ethereum-tokens Dai (DAI), Golem (GNT), Maker (MKR) and Zilliqa (ZIL).
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