The tech entrepreneur and Bitcoin promoter first pitched the idea for a Square hardware wallet and custodial service last month, but today revealed that “we’re doing it.”
We are doing it #Bitcoin https://t.co/IwbKuBoXGv
– jack (@jack) July 8, 2021
Dorogusker said on Twitter that Square wanted to make Bitcoin custody more common and outlined the way forward for the hardware wallet deployment:
“We have a lot of questions and problems to solve and we’ll start with this product direction: Bitcoin first, global distribution, multisig to achieve ‘assisted self-custody’ and prioritize mobile use. “
Our next step is to build a small cross-functional team, which will be led by @max_guise (Happy to see you again!!). We will incubate this full stack of technology, design, product, manufacturing and supply chain with @templetonthomas & Square’s hardware team to start with a solid foundation.
– Jesse Dorogusker (@JesseDorogusker) July 8, 2021
Dorsey explained the term “assisted self-care” last month, noting that the company was looking to provide a streamlined experience for managing a hardware wallet.
“Custody doesn’t have to be all or nothing. We can probably simplify custody through “assisted self-care”. Assisted requires excellent product design: minimal installation time, leveraging existing devices, and end-to-end reliability, ”he said.
As crypto has seen a massive increase in speculation from new investors amid industry growth over the past 12 months, the topic of crypto custody is becoming increasingly important.
Hardware wallets are one of the most secure ways to keep crypto assets, as they allow users to store their private keys and holdings on external devices offline. But average users complain that they are difficult to learn how to use.
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Storing funds on an exchange can be risky as the user does not have full control over their assets which can be lost due to hacks or caught in regulations.
It is also extremely easy for hackers to sweep away users’ digital assets by deploying tactics aimed at acquiring personal information, such as sim trades, malware, and even bogus apps on Google Play.
Computer or mobile software wallets also face the risk of malware.