GK8, an Israel based crypto startup has unveiled its new product, a cold wallet which will also have on-network transfer capabilities without internet access.
The main reason why crypto cold storage wallets exist in the first place is because wallets that are internet accessible are exposed to hacks and attacks from the outside, making their security a major risk. Cold wallets help in diluting the problem since they are not connected to the network. Cold wallets are not prone to attacks from the inside unless they are accessed through the hardware wallet and hence considered pretty much safe.
However, with cold wallets the users are handicapped to some extent as they are not able to transfer their digital assets to other people directly. The new cold wallet from GK8 would be able to retain the security of cold wallet and will also allow it to send and receive digital assets, best of both worlds!
The co-founder of GK8, Lior Lamesh, told CoinDesk that the company has a unidirectional connection established directly with the blockchain, which makes it possible to send and receive digital assets, however, the one-way signaling makes it secure as the process do not operate itself on the internet. GK8 describe their technique as:
Bypass core assumptions related to cryptocurrency transfers and eliminate attack vectors to any asset transfer.
The GK8 team is made up of renowned cryptographers in the crypto sector, the board members include Eran Tromer, who is widely recognized in the crypto community as an expert cryptographer and is also one of the founding members of the security token Zcash. Prof Eran Tromer is also featured on the company’s videos uploaded on YouTube where he endorses the security options provided by GK8. In the video message professor, Tromer praised GK8 by saying:
GK8’s cold wallet solution improves on the state-of-the-art by having essentially unidirectional communication from the wallet to the outside and never accepting raw information from the outside back into the cold wallet. This minimizes the attack surface and prevents attacks
The company has secured five patents for their innovative new cold wallet, the abstract of the patent filed describes the project as being electronically disconnected from other digital devices, the description is written as follows:
The digital wallet device is electronically disconnected from other digital devices and comprising: a cryptocurrency integrated circuit (IC) that is isolated from any computer interface and a unidirectional communication hardware for sending said transaction to a communication device for broadcasting said transaction via a network.
Both founders of the company are experts in cybersecurity and have served under the Israeli prime minister’s panel of cybersecurity experts, before starting GK8 in 2018. Lamesh said that the idea stemmed from his co-founder Shahar Shamai’s frustration with traditional wallets and the lack of security features in them. He said:
We tried to think: how can we make a fully operational cold wallet with no internet connection at all. And we ended up doing exactly that
Lamesh also said that the wallet will soon become the de-facto wallet for institutional investors, owing to its security and usability.