Specifically, Bitkey has been launched globally, spanning over 95 countries across six continents, an expansion that aims to support access to self-custody options, allowing individuals to exercise greater control and security over their Bitcoin holdings. According to Block, a substantial number of Bitcoin owners rely on custodial platforms or exchanges, relinquishing control to the respective custodians.
In this context, Bitkey offers a mobile app, hardware device, and some recovery tools to address potential loss scenarios involving the phone or hardware. Available for pre-orders at the time of writing, the product is set to commence shipping in early 2024.
When speaking about the product launch, representatives from Block emphasised the decentralised nature of the Bitcoin payments network and its potential to support a more inclusive financial system. They also anticipate a growing demand for ownership and self-custody as individuals seek control and peace of mind in managing their digital assets.
To facilitate accessibility, Bitkey prioritises user-friendly recovery experiences, reducing reliance on lengthy passwords. Representatives from Bitkey acknowledged the hesitation among users to transition from exchanges to self-custody wallets due to fears of errors, particularly with the historical requirement of safeguarding seed phrases. Bitkey addresses this concern through a 2-of-3 multi-signature design, eliminating the need for users to remember extensive passwords. This design employs three keys, requiring any two keys to collaborate for Bitcoin transactions or security-related actions.
Bitkey places the two keys directly in users' hands, with one on the mobile app for easy transactions and security management, and the second on the hardware device for additional offline security and recovery. The third key, held on Bitkey's server, serves specific purposes, such as facilitating mobile transactions and aiding recovery in case of lost devices. It's worth noting that Bitkey's limited access to only one key aims to ensure users' control over their bitcoin.
According to the official press release, Bitkey's mission revolves around bridging traditional centralised fiat monetary systems with the decentralised, borderless financial sector of Bitcoin. To this end, Bitkey has formed partnerships with entities such as Coinbase and Cash App to streamline the transition of bitcoin from exchanges to self-custody. This collaboration allows Bitkey customers to transfer or buy bitcoin through these partners, contributing to a more straightforward experience toward self-custody.
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