Security of property or assets is a topic that lives in the spotlight. Its importance reaches more considerable proportions in the cryptocurrency world, where the real value is attributed to lines of code. There is a project that aims to revolutionize the standards in this regard: Bitcoin Vault and its 3-Key Security Solution.
In the cryptocurrency sector, security has always been crucial. It is part of different aspects such as the transaction process, the quality of the technology that stores the coins, or the value and credibility of the cryptocurrencies themselves.
Outcomes, however, vary considerably, which is understandable for cutting-edge technology projects that are just taking shape.
As a result, developers buckle up to create coins that can solve the most pressing problems. Among different cryptocurrency projects, there is Bitcoin Vault (BTCV) – a currency that focuses on establishing a higher standard of security. But is this goal feasible? Or is this just smoke and mirrors? We’ll cover these and other aspects in this review.
Bitcoin Vault: The essentials
BTCV was first launched at the end of 2019. It is a proof of work-based coin that uses the SHA-256 cryptographic hashing algorithm. BTCV’s total supply is 21 million. In the case of this cryptocurrency project, the aim is to reinforce security standards through a solution that the cryptocurrency market hasn’t seen before.
Usually, in cryptocurrencies, the transactions are secured by a single cryptographic private key. But this can get you into a tight spot when it turns out that your coins were sent to the wrong or fraudulent address. Undoing a transaction? Not an option.
But here comes Bitcoin Vault.
BTCV’s secret ingredient is its three key security solution. This function is a blessing if you want to cancel or reverse the transaction performed on a blockchain. As the name indicates, it’s feasible thanks to three cryptographic private keys. Let’s take a closer look at them.
The first one is a standard transaction key. It allows you to access your wallets and send funds. BTCV’s transfer time is around 24 hours. That’s how long it takes to create the 144 blocks necessary for approving a transaction.
If you have the slightest suspicion of any misdemeanor aimed at your funds, you can cancel an unauthorized transaction within the 24-hour window. All thanks to the second private key, known as the cancel transaction key.
Once this key is used, your funds will be moved to a new wallet with a brand-new set of keys. The cancel transaction key is beneficial for institutions and exchanges, which are more vulnerable to attacks.
It only requires the status of a hot wallet to be monitored at least once a day to be sure that everything is under control.
The third key, known as the fast transaction key, was designed to turn off the 24-hour transfer period, placing transactions in a fast lane to be sent in the next available block.
So, feel free if you want to make a quick transfer to a trusted recipient. Thanks to this key, you can send funds within minutes. But also take care to store both the cancel and fast transaction keys in a secure location.
The progress of development
How can you tell if you are dealing with a reputable cryptocurrency project development team? By verifying that it has a clear vision, strategy, plans, and timeline for achieving its goals.
Sadly, completing a roadmap is not so common in the cryptocurrency world. Many cryptocurrency projects start on a high note and often fail to keep up with the pace of development or just lose track, eventually leading to closure.
Only a few cryptocurrency projects and their teams strive to deliver on the planned vision and keep up with the pace of the industry’s developments and upgrades. When tracking the history of growth, we can note that Bitcoin Vault is consistently doing its bit.
Milestones from the roadmap
The key features of BTCV weren’t accomplished overnight. It was a complex but well-planned process.
After its launch in 2019, the following year was a landmark period for further developments, including listings on multiple crypto exchanges and, most importantly, implementing the three-key security solution for fast and cancel transactions on the blockchain.
The next step was to create an entire ecosystem of applications to support BTCV: the desktop wallet Electrum Vault and the Gold Wallet — BTCV’s flagship mobile wallet app and web key generator.
These additions are crucial to enable the community to take full advantage of the three-key security solution.
The BTCV project had a commendable 2020, setting the tone for what was to come in 2021. Right from the start, the BTCV team laid out a new roadmap.
The first noticeable milestones were a new set of improvements: development upgrades, security upgrades, UX upgrades, products upgrades, marketing activities, and other upgrades.
The roadmap update was itself a clear message that the further development of the project would not be possible without the proactive approach of the whole crypto community. All the changes are described in detail in a separate section, which you can find here.
BTCV has also introduced a whole palette of upgrades, including staking products, a new website launch, tokenomics analysis of BTCV (also known as wrappedBTCV). BTCV’s blockchain analytics platform, and GoldWallet user notification features.
All of these were completed in Q1 and the first half of Q2 2021. The initial phase of fiat integrations is completed as well. Users can now purchase BTCV with a debit or credit card via buybtcv.com
The future as planned
What’s on the horizon? BTCV’s development team is currently working on blockchain security audits and implementing a platform for airdrops and apps. Soon, BTCV will undergo various initiatives regarding security, the test phase of the BTCV token, and integration into the DeFi ecosystem.
The following months also promise to be interesting. Activities such as the development of dApps, quantum scientific partnerships, and new three-key functionalities are planned for this time.
Challenges and solutions
BTCV’s development path has not always been a bed of roses. As in every ambitious project, the team had to overcome their fair share of obstacles. As for every PoW-based cryptocurrency, one of the most fearsome threats is the 51% attack.
It started in the first half of 2020 when a few mining pool entities tried to gather more than 50% of BTCV’s hash rate to take over the control of the network.
At that point, the BTCV team could either engage in a costly hash rate war or focus inwards, prioritizing the project’s development. It turned out to be a no-brainer, and the team decided to go into centralized mining.
After the successful launch of the three-key security solution and the hard fork to implement merged mining with Bitcoin, this year, the team is again focused on decentralizing the mining aspect of the project. BTCV is now mined by external, trusted pools like BTC.com.
The latest news that warmed up the cryptocurrency community was the announcement that Binance Pool was joining BTCV mining. These are just the first milestones on BTCV’s road towards complete decentralization.
Another primary concern of cryptocurrencies based on PoW mining is the extreme need for energy. Although there are alternative consensus mechanisms, PoW is still the primary method due to its proven security, useability, and robustness.
Bitcoin and Ethereum still rely on PoW mining for achieving network consensus.
Nevertheless, BTCV’s team has implemented merged mining with Bitcoin. Miners can mine bitcoin and Bitcoin Vault simultaneously, which can reduce energy demand and increase the potential of gaining extra mining rewards.
A trending topic in the field of cryptocurrencies is Decentralized Finances, or DeFi. It’s a concept related to the transition of financial services to the blockchain. It involves loans, savings, and insurance. Today, Ethereum dominates this trend.
The BTCV team also deployed the BTCV token on the Ethereum blockchain. It allows users to integrate with DeFi and explore the options of this ecosystem.
Bitcoin Vault is a unique cryptocurrency project that is worthy of interest. The three-key security solution and the whole ecosystem of apps make BTCV an attractive choice for individuals and institutions looking for improved security on the blockchain.
If an indicator for the quality of a cryptocurrency is its presence on trustworthy exchanges, BTCV certainly meets this requirement.
To recap, BTCV scores points in multiple areas as a cryptocurrency project. It focuses on development on various fronts, not only as advanced technology but also as a scientific partner.
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