Block, formerly known as Square and led by Twitter co-founder Jack Dorsey, is on the brink of launching Bitkey, a hardware-based crypto key product poised to enhance self-custody in the digital asset realm.
Bitkey is a physical hardware device, meticulously designed to empower users with absolute control over their digital assets. In fact,
Lindsey Grossman, Bitkey’s business lead, revealed in an exclusive conversation with Business Today that a dedicated team of engineers, designers, and product managers has toiled for months to bring this cutting-edge innovation to life.
“The Bitkey Beta program is the culmination of rigorous effort from our team and invaluable input from industry experts and potential users,” Grossman emphasized.
Bitkey’s ethos revolves around empowering users to securely manage their Bitcoin holdings in a user-friendly manner.
Grossman highlighted Block CEO Jack Dorsey’s enthusiastic support for the project, emphasizing its potential to empower users and the transparency in its developmental process.
During an exclusive presentation over video call, Grossman showcased Bitkey’s futuristic design, hinting at a gadget straight out of a sci-fi movie. However, beyond its aesthetic appeal, Bitkey aims to address a crucial need in the crypto sphere—providing ownership transparency and self-custody amidst escalating regulatory oversight globally.
So, how does Bitkey work?
The device serves as a self-custody wallet, allowing users to purchase Bitcoin from an exchange and transfer it to their Bitkey wallet. Any transaction or transfer beyond a user-set limit requires approval from the Bitkey device, offering an additional layer of security.
Grossman elaborated on the security measures, likening it to the two-factor authentication used in banking. In an example scenario where a user’s phone is compromised, Bitkey’s spending limit feature ensures only a predefined amount is at risk, safeguarding the rest behind the device’s added security.
Speaking about the importance of self-custody wallets, Grossman highlighted the risks associated with exchange-hosted wallets. Referring to the FTX exchange collapse, she stressed the need for customers to truly own their keys to avoid potential losses.
It is worth noting that Block has been transparently detailing Bitkey’s development on its blog, showcasing its minimalist design and robust functionality. With no screen interface on the device itself, Bitkey’s exterior boasts a sleek look, featuring a fingerprint sensor as its sole interactive element.
Bitkey operates on the concept of a ‘two out of three multi-signature Bitcoin wallet,’ ensuring enhanced security. Grossman detailed the keys’ distribution—two held by the user (via mobile app and Bitkey) and one retained by Block, further emphasizing Block’s inability to move funds independently.
While the product’s price remains undisclosed, Block has primed partnerships with Cash App and Coinbase, signaling a proactive approach to garnering interest ahead of its anticipated launch later this year.