Trezor Hardware Wallet, the most popular bitcoin and cryptocurrency hardware wallet, has been in the news for all the right reasons lately. Recently, Satoshi Labs, the company behind Trezor, announced that it hasfor its devices and services. The firm revealed that both the Trezor One and Trezor Model T will get firmware updates, and has detailed new features.
New Coins Finding a Home on Trezor
Storing cryptocurrency in a hardware wallet is much more secure than investors leaving their cryptocurrencies with an exchange. The problem, however, is the hardware wallets in the market support only a fraction of the 1,620 coins and tokens in the cryptocurrency market. Companies making hardware wallets are essentially for-profit businesses, hence, they choose which coins their wallets supports based on the dynamics of demand. This makes it even more difficult for new coins to be stored on the most popular crypto wallets.
Interestingly, Satoshi Labs, has taken an interesting approach by going outside of the norms to provide support for some new coins such as Viacoin (VIA), Groestlcoin (GRS), Fujicoin (FJC), Vertcoin (VTC), Lisk (LSK), Bitcoin Private (BTCP), Zcoin (XZC), and Dogecoin. The firm notes that the aforementioned:
“[c]oins were added into the device firmware and will be gradually surfacing in Trezor Wallet as well. They can be accessed via third-party applications like Electrum. Vertcoin is available in Trezor Wallet.”
Going forward, Trezor is working on its own Ethereum Wallet as part of efforts to establish market dominance in the cryptocurrency hardware wallet space. The firm plans to add support for more than 500 ERC20 tokens so that they can be accessed directly fromwithout the need for third-party applications that could pose a security risk.
Apart from the support added for new coins, Trezor wallet has been updated with additional features. One of such interesting features allows crypto investors and traders to export their transaction history as a PDF. In addition, the firm has updated the conversion calculation that estimates the value, in fiat currencies, of cryptocurrency held in the wallet to reflect more accurately market prices.
With great responsibility comes great power. Cryptocurrencies are decentralised, and investors and traders do not have to worry about paying high transaction fees to banks or having to cope with needless intermediaries. Furthermore, cryptocurrency traders can conduct near-anonymous transactions that cannot be poked into by anybody. Even government organisations will not always have their way when it comes to crypto transactions unless they use some extreme powers.
Cold Storage Versus Hot Wallets
The level of anonymity (or pseudo-anonymity) supported by crypto wallets creates a major weakness for crypto investors. The problem is that if cryptocurrency kept in hot wallets gets stolen, it is impossible to cancel or reverse the transaction. Investors can report the loss to law enforcement and hope that they catch the thief. If the cryptocurrency is stolen from an exchange, traders could accuse that exchange of negligence, but it will probably not be able to refund their coins.
Cold storage in wallets such as Trezor or Nano Ledger remains one of the better ways to secure cryptocurrency investments, compared to. Hot wallets, (usually desktop, online, or mobile apps) are considered inherently less secure than cold wallets because the private keys to various cryptocurrencies are held by third parties – which defeats the decentralisation ideals of cryptocurrencies.
Nonetheless, desktop wallets can be safe if the computer is not connected to the internet, but traders risk losing their coins if their hard drive crashes. Online wallets are hosted on a website; anybody with access to the backend of the website can access traders’ keys. Mobile app wallets, on the other hand, store investors’ encryption keys in the phone memory, but that turns the traders’ phone into a mobile bank that they can not afford to lose.
In summary, there is no crypto wallet that can be deemed to be perfect, but it is obvious that depending on the profile and needs of different crypto traders, some could be better than others.
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