Author: Alon Muroch 2015-01-21 08:20:42
Published on: 2015-01-21T08:20:42+00:00
Bitcoin is facing a challenge in finding a suitable platform for mainstream users who are not tech-savvy. The available solutions either offer DIY security and privacy or rely on third-party services, both of which fail to scale efficiently. Traditional banks have an advantage over third-party services as entry costs and regulations make it difficult for anyone to create a bank, ensuring that the end user's minimum security level is met. In contrast, in the Bitcoin space, two programmers can create a wallet/platform without any regulation or entry costs, which poses a serious threat to the end user's security. Several services have tried to solve this problem using multisig to create a 2-factor authentication/authorization mechanism, but those solutions did not increase security. Coupled with the fact that Bitcoin transactions are irreversible and a scarce commodity, insuring them becomes a significant challenge, and premiums will be high. The author believes that a decentralized platform can provide both security and privacy, and true 2-factor authentication/authorization schemes can improve personal security significantly. This could lead to third-party wallet services becoming obsolete and enable non-technical users to use Bitcoin securely while creating a baseline for building innovative services on top.
Updated on: 2023-06-09T15:53:38.368175+00:00