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Cryptocurrency users and business figures are wary of a new, strange security feature unveiled by the US Coinbase Exchange this week.
Save your funds with "Just a pbadword"
In a blog post dated Feb. 12, Coinbase announced that traders and portfolio holders could now store a backup copy of their private keys with the help of iCloud or Google Drive.
"You only need to remember the pbadword that you have decided to recover your funds," said the company.
If you lose your device or log out of the app, you can easily regain access to your funds by combining your personal cloud account (iCloud or Google Drive) with your pbadword.
The purpose of this feature is apparently to provide users with peace of mind, in case of loss or theft of a device, reducing the risk of compromise of the wallet or account. exchange.
"The private keys generated and stored on your mobile device are the only way to access your funds on the blockchain," said Coinbase.
Owners of "user-controlled wallets" such as Coinbase Wallet sometimes lose their devices or do not save their 12-word recovery phrases in a safe place, thus losing their funds forever.
No faith in the management of the risks of the user
The move immediately sparked curiosity. The conventional wisdom in cryptocurrency circles has always warned against storing sensitive information in the cloud – weak pbadwords and data management have triggered a plethora of hacking attempts, some of which have resulted.
Jesse Powell, CEO of the US stock market Kraken, pointed to the poor record of cloud storage, saying that the Coinbase option could ultimately do more harm than good to users.
"I'm not a fan of user training on security issues. Cloud storage, while convenient, is constantly compromised, especially with all the ports on the SIM card, "he said. wrote on Twitter, referring to hackers who manage to swap accounts by persuading mobile service providers to change a victim's phone number on their own device.
99% of chances that people who use it without knowing it do not have a pbadword strong enough to withstand professional cracks.
I do not understand, how can you misunderstand your target audience?
– The crypto dog (@TheCryptoDog) February 12, 2019
The users of Coinbase did not seem convinced either, the company receiving many criticisms on social networks.
What do you think about Coinbase's private key cloud storage option? Let us know in the comments below!
Images courtesy of Shutterstock
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