A new application through MyEtherWallet called MEWconnect, and a new product from a Silicon Valley startup called SealBlock marry the benefits of hot and cold wallets in two unique ways.
Hot vs. Cold Storage
The main distinction in wallets is “hot” or “cold.” Hot means that it is connected to the Internet, and the coins can easily be transacted. This would be most similar to carrying physical, fiat cash. Cold storage removes coins from contact with the Internet. This would be like spending the fiat cash from your checking account with a debit card, rather than carrying the physical cash.
Evolving Cold Storage
One of the primary barriers in cryptocurrency adoption continues to be fears of losing coins to hackers. Cold storage prevents this, but in turn, removes the benefits of cryptocurrencies as instant mobile payment options. These novel technology implementations have the potential to drive cryptocurrency adoption for businesses and individuals that would not consider their use before.
MyEtherWallet Hardware Wallet App
MEWconnect maintains the convenience of the MyEtherWallet hot wallet with much of the added security from a cold wallet by utilizing the physical memory storage on a user’s phone to establish a cold wallet. It is currently available for beta testing. The company is offering rewards up to $2000 for finding bugs in the code.
The final app for iOS and Android is expected to launch late this month. Integration of a payment processor could make it possible to make everyday transactions directly from secure cold storage.
SealBlock Hardware Hot Wallet
SealBlock is hardware wallet that uses Intel SGX hardware enclave technology makes the process possible by protecting the critical data of cryptocurrencies from user level computing. The product is similar to the commonly used Ledger Nano S or Trezor, but with more computing power and storage capacity. It is designed for the sophisticated wallet needs of token funds, exchanges, miners and institutional traders.
The SealBlock was demonstrated first last month at the Silicon Valley Blockchain Security Technology Forum hosted by BlockTrain. Their first round of funding is still active, garnering interest from firms like Whales Capital and ASB Venture. The product was created through the VeriClouds incubator, a leader in hardware encryption and cyber security.