Author: Mike Hearn 2015-01-09 14:00:59
Published on: 2015-01-09T14:00:59+00:00
The proposal of an optional identity layer modeled after the Internet itself can help solve security issues faced by Bitcoin exchanges, according to a mailing list from late August. However, it is unclear how identity can help with incidents like the Bitstamp hack where KYC was already in place for customers. Requiring all transactions to have attached identity information would not be feasible for Bitcoin. In the long term, minimalist secure hardware that has additional policies on top could adequately defend private keys, and very tight hot wallets that risk analyze instructions have been proposed in the past. The lack of such hardware currently exists primarily due to implementation lagging behind ideas, but the Bitstamp event may spur development forward.
Updated on: 2023-06-09T15:17:10.817343+00:00