World’s first insured Bitcoin vault opens in United Kingdom

The world’s first Bitcoin storage service that insures deposits of the digital currency against hackers and accidental loss has opened in London. Bitcoin is a virtual currency that can be generated through complex computer software systems with solutions shared on a network.

 

Although, the digital currency is gaining popularity, concerns about its security are on the rise. Online wallets used to store Bitcoins have been subject to a number of cyber-attacks and some users have also suffered from accidental loss.

 

The new Bitcoin storage service offering insurance in UK, named Elliptic Vault, uses “deep cold storage” techniques to secure the digital currency. Bitcoin keys are encrypted and stored offline. There are multiple copies, protected by layers of cryptographic and physical security.

 

The copies are accessible only via a quorum of Elliptic’s directors. The facility’s founders claim they are the “first in the world” to offer insurance for Bitcoin owners. Unlike money stored in a conventional bank, bitcoins are not insured and there is no way of retrieving them.

 

“One of the main concerns people have with Bitcoin is that it’s quite difficult to store securely,” Elliptic co-founder Tom Robinson, told the BBC.. “Offering people insurance seemed an obvious step,” said Robinson, an Oxford graduate, who started the company with two friends. (PTI)