Winklevoss twins filed a new patent for a solution for storing digital assets. The move highlights the importance of a proper custody solution for the entire field.
A System for Storing Digital Assets
Winklevoss IP LLC, a company owned by Cameron and Tyler Winklevoss has filed an application for a patent seeking protection for a system for storing digital math-based assets through a secure portal.
According to the application, the solution will introduce a new method which enables the division of a digital asset account among a “plurality of users.” Those accounts are dubbed as “multi-signature” and will require a number of users to authorize a transaction altogether, hence providing a higher level of security.
The application reads:
In embodiments, private keys for a multi-signature account may be distributed to a plurality of users who are required to authorize a transaction together. In embodiments, private keys for a multi-signature account may be stored as backups, e.g., in secure storage, which may be difficult to access, and may be used in the event that more readily obtainable keys are lost.
The Need for a Reliable Custody Solution
Experts have already highlighted the importance of a reliable custody solution. Earlier in July, prominent cryptocurrency investor Mike Novogratz noted that a custody from a “trusting source” is likely to catalyze the next move up in prices.
Speaking to the host of CNBC’s “Cryptotrader” show Ran Neu-Ner, Novogratz said:
I think the next move up is going to need custody from a trusting source. […] If I’m at the state of Wisconsin, I’m not going to risk my job on a company called BitGo.
It’s worth noting that Goldman Sachs recently announced that it’s considering offering custody services for cryptocurrency funds.
What do you think of the latest patent filed by the Winklevoss twins? Don’t hesitate to let us know in the comments below!
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