Tech Innovation & Bitcoin
By: Patti Conner
Bitcoin has had an up-and-down journey to relevance in modern society. As things stand now, though, it has still achieved the status of being the most recognizable and influential digital currency on the market. But one of the hurdles that remains to be cleared for Bitcoin, if it is to become a more mainstream currency, is that of security. Many would-be users are wary of storing money in digital form, given concerns about hacking or even the physical theft of a written down password (given that a single key code guards one's Bitcoin stash).
Fortunately, there are steps being taken to reassure users about the security of Bitcoin "wallets" and other means of storage, such as the incredible heartbeat-based tool written about at HITB last year. That particular device, the Nymi, is designed to recognize a user's individual heartbeat (as opposed to just a pulse in general) as an unlocking device for a Bitcoin key. Naturally, that level of personalized security is reassuring for many.
But at the same time, the Nymi is far from the only tech-based innovation that's helping Bitcoin push toward the mainstream. Here are a few other ways that tech companies and new startups are getting creative on behalf of Bitcoin and security in particular.
Perhaps most similar to the Nymi concept is the Wocket, an independent device designed to enhance financial security with or without a Bitcoin application. Gizmag explains the concept of the Wocket in some detail, painting the picture of a comprehensive digital wallet designed to accommodate pretty much all of our payment methods. The device allows users to scan up to 10,000 stripe or barcode cards with their information stored on the Wocket. Then, when a given card is needed, you simply select it on the device's touchscreen, and it links wirelessly with the relevant account. It's been suggested that the Wocket could work similarly with a Bitcoin account, and with this in mind what really makes it an interesting smart wallet is its security concept: you can use a PIN to unlock it, but the system is also dependent on biometric voice identification!
Another very interesting security device meant to assist with Bitcoin storage is the Ledger Wallet, a tool from an independent company by the same name that's designed to help with physical storage of the crypto-currency. That may sound like a strange concept in and of itself if you're not as familiar with Bitcoin, but according to this Bitcoin article from FXCM, "You can also stash your Bitcoins in physical form. A paper wallet is a paper snippet containing two QR-codes: one for the address and another for the private key." This implies that some users quite literally keep their Bitcoin storage information recorded on slips of paper! If that sounds short of an appropriate security measure, Ledger Wallet is looking to fix the problem. Its product is essentially a USB stick that satisfies users' desire for a physical Bitcoin wallet, but with high-level digital security.
While these services have made it easier for users to feel secure about storing and handling their own Bitcoin, another service (known as Elliptic) may ultimately make the biggest impact of all by providing similar reassurance for banks. Business Insider outlined this impact in very clear detail, explaining that by providing a way of tracking Bitcoins, Elliptic makes it easier for banks to identify where transactions are coming from. Generally speaking, banks are expected to know where any funds they're storing have come from, so as to be sure they're handling legitimate transactions. But while Bitcoin transactions are all publicly recorded, the source of those transactions is traditionally mysterious. Elliptic does away with the mystery through advanced software that reveals the Bitcoins' origin, and thus whether they're coming from a proper owner or a potential hacker.
Through all of these innovations, Bitcoin is slowly but surely becoming more secure and accessible for individuals. And in the coming years, as more people begin to use the digital currency and it earns trust from banks, merchants, and potentially even governments, it'll be fascinating to see the continued impact of technological innovation on the spread of Bitcoin.
Author Bio: Patti Conner is a freelance writer from Seattle, Wash. Her primary interests and writing topics include technology, start-up culture, and business school.
