Bitcoin wallet security can come in many different ways. Using a password for extra security or a dedicated hardware solution are two popular solutions. Cobo, a Chinese startup, is taking this concept to a whole new level with its Vault hardware wallet. Any successful attempt to hack the device will lead to its destruction.
Cobo Takes Security Seriously
A wide range of software and hardware Bitcoin wallet options exist today. None of them is 100% secure and foolproof, as such a thing does not exist. Cobo’s Vault hardware wallet comes awfully close to perfection, although it boasts some pretty “wacky” features. At the same time, any extra security in this day and age is no unnecessary luxury.
Several aspects of the Vault stand out. It is a physical Bitcoin wallet for all intents and purposes. This is achieved in a completely offline manner. Unlike other hardware wallets, the Vault is not capable of connecting to other devices. It is completely off-the-grid, which will be of great interest to more paranoid Bitcoin users.
Under the hood is where the magic happens. Cobo opts for some extensive security measures before allowing device access. A companion app needs to be installed to power the Cobo Vault. Users are presented with a 24-word seed phrase and are asked to enter a complex password of 10 characters or more. They also need to scan a QR code through the companion app. Once all of these steps are complete, the Cobo Vault becomes accessible to users. A very extensive and painstaking process, but security and convenience don’t always go hand-in-hand.
Hacking Makes It Go Kaboom
That is not all there is to know about Cobo’s device. Any attempt to hack the device will result in a self-destruction process. No physical explosion will take place, yet the device will wipe itself clean. This is a very interesting extra security measure. Most users might not even see the merit of this addition. Those who own big amounts of cryptocurrency, on the other hand, won’t mind a bit of extra device security.
It is not the first time Bitcoin wallet providers take extreme measures. Samourai Wallet, for example, has some very similar features. Its software is also capable of wiping data if an intrusion is detected. With Cobo exploring a similar option, there appears to be some demand for such features. Taking this concept and adding it to a hardware wallet is an industry-first. It also explains why the retail price will be $479. Early backers of the crowdfunding campaign can obtain a unit for $300.
This is another key example of how the Bitcoin industry continues to evolve. Demand for secure storage solutions is not slowing down. Instead, users want to keep their portfolio safe at all times. Despite less convenience, Cobo’s hardware wallet makes for a compelling product. As more users enter cryptocurrency, security becomes an even bigger priority. Products like these show it can be done, albeit at a relatively steep price.
What do you think about a self-destructing Bitcoin wallet? Do the merits outweigh the potential risks? Let us know in the comments below.
Images courtesy of Shutterstock
