- VeChain launches VeKey, a solution for SPOF caused by single individual access to private keys
- The VeChain’s VeKey Based Threshold Signature Turnkey Solution uses the off-chain multi-signatures to take care of the SPOF issue
- Efficiency and security ensured with the VeChain’s VeKey will benefit startup businesses
On April 30, 2019, VeChain announced the launch of VeKey, a threshold signature turnkey solution for enterprises seeking to control internal risk as well as reduce the possibility of SPOF (single point of failure.)
The VeChain’s VeKey Based Threshold Signature Turnkey Solution
The newly-launched VeChain’s VeKey Based Threshold Signature Turnkey Solution was introduced on April 18, 2019, at the VeChain Summit. The solution is aimed at offering secure private key management services by combining secure hardware and software with the chips integrating independent secure coprocessor and secure technologies to ensure the environment created is appropriate for confidential data.
Using the VeChain’s VeKey Based Threshold Signature Turnkey Solution the private keys can be disintegrated into many parts which can be stored in different VeKey devices. The number of VeKeys needed to recover the private keys can then be predefined by the users ensuring there is not one single person in full control of the assets. In case of the loss of the private key, the enterprise can be able to recover it using the predefined number of VeKeys.
SPOF Caused by Single Individual Access to Private Keys
Blockchain has been used to bring in a lot of benefits to the digital assets industry. However, it also opened a doorway for risks such as SPOF. The decentralized nature of the blockchain means that there is essentially no supervision of individual processes. This means that there are firms that have only a single person to access the private keys which makes assets recovery virtually impossible in case the concerned person is physically unable to access the private keys. This was witnessed with the death of Gerry Cotton, the CEO QuadrigaCX on December 9, 2018.
It could never be clearer that using blockchain technology to manage digital assets has a weakness. Although having a single person to access private keys and wallets is secure, it is still a huge risk. VeChain has identified this problem and developed a solution in the form of the VeChain’s VeKey Based Threshold Signature Turnkey Solution, which will make use of the off-chain multi-signatures to take care of the SPOF issue.
Efficiency and Security
With the VeKey solution, the VeKey holders are able to review or initiate a transaction from anywhere. Thus, the threshold multi-signature can be achieved remotely which increases the efficiency of the process. Moreover, the solution is flexible hence startups can customize it to fit their needs.