When we talk about crypto wallets and storage of digital assets, the first thing that comes to mind is the issue of security. Over the course of past few months, we have witnessed that with the increase of investments and building of applications and projects on blockchain, the need for security of the digital assets have significantly increased. Goldilock provides solutions for such problems. Goldilock Security Suite leverages multi-factor authentication, biometrics, regressive technology triggers and cryptography to shift the burden of securing crypto wallets and other digital assets away from the owner and onto Goldilock’s physically segregated and vaulted platform.
Goldilock has also been valued to be ranked on the number 9 on the Forbes’ list of “Top 10 New Blockchain Companies To Watch For In 2018.”
The two usual types of storage of digital assets are cold and hot storage. Cold storage is a personally held storage, in the form of USB, hard drives etc. which is used for long term storage. The problem with this storage is that it can be stolen, misplaced, destroyed or confiscated (Like the event of confiscation of the bitcoins of the alleged Silk Road Drug dealer). Similarly, the encrypted cold storage solutions offered by companies like Coinbase have extremely limited accessibility, which is problematic for institutions. Although storing the encrypted key in inaccessible bank vaults may be the key to the security of the assets, but retrieving the keys to the USB takes days, which might not seem practical for active users.
The other type of storage is hot storage, which is an online storage used for short term storage, with continuous access and transactions.This kind of storage is prone to hacking, denial of service and there’s a continuous risk that the company holding the storage might collapse. Simply put, anything present on the internet now a days is hackable and considering the fact that over the past year, $1.1 billion worth of cryptocurrency was stolen is enough to vouch for the lack of security provided by hot storage. The hacking attempts and malware have been on a rise, like the recent cases of SamSam malware as hot storage are prone to such problems.
How Goldilock works
The simple steps to the solution to this problem are provided in the white paper of Goldilock:
1. Wallet is stored offline through a physical airgap mechanism, and is not accessible from the internet.
2. Using a non-IP mechanism, the user activates their wallet making it accessible over the internet.
3. User can securely access their wallet over an encrypted connection using a dedicated URL and access credentials.
Goldilock provides better security solutions for private cryptocurrency keys than those which are available by third party hot wallets and cloud storage providers. It provides more security and accessibility than the traditional hardware wallets (Cold storage).
Goldilock provides solutions for institutions seeking significant security upgrades for their user’s most sensitive digital assets by taking them fully offline when not in use, but who need to provide access to those assets at a moment’s notice.
For individual customers, the solution provided by Goldilock is simple, yet effective. Goldilock will contain an encrypted storage device. This storage device will be stored in an inaccessible vault in the security data center. This device would be physically disconnected from the internet. Once triggered through an authorized non-IP command by the authorized customer, the storage device would become accessible on the internet through a secure login. After the login is successful, the clients are allowed to access their data and complete transactions.
Cryptocurrency exchanges tend to store their keys in online hot wallets or in deep inaccessible storage, due to this we’ve seen in the past that the exchanges were the most targeted areas by hackers and millions of dollars worth of cryptocurrency was stolen. Goldilock presents an online on-demand environment that reduces transaction times and is efficient of handling peak traffic periods while minimizing the probability of hacks. The most interesting fact about the storage is that they have no access to the user encrypted data.
Goldilock also provides services to cold wallet and hot wallet service providers. For hot wallets, Goldilock can be outsourced as the user encrypted data cannot be accessed by it. For cold wallets, according to the white paper, cold wallet operators can leverage it to enhance their existing technologies. A cold wallet solution can be integrated into the system, allowing operators to offer a more readily accessible, yet secure and remote solution.
Goldilock not only provides a storage for money, but also provides a storage for important documents relating to Health, finances or legal records etc.
The vision of the company according to the website is:
We based Goldilock on the premise that your data should not be physically connected to the internet when you’re not using it, but that it does need to be available to you from anywhere immediately when you want to access it.
ICOs and token sale
To fund the operations of the company, the company decides to have a token sale with a hard cap of $50 million. Details on the sale phases, accepted forms of currency, and exchange rates will be communicated in Q3 2018. According to the company, the token sale will fund the company operations and the allocation of funds would be as follows:
All in all, the services promised to be provided by the company look promising as the model provided by the White paper of Goldilock seem efficient and practical. In the near future, we expect to see more startups that address the problems of security and would eventually eliminate the third party monitors and hackers out of the game.