Jack Dorsey’s Block, now Bitkey, has launched an innovative self-custody bitcoin wallet, challenging traditional wallet norms by eliminating the need for seed phrases. Bitkey introduces a unique 2-of-3 multi-signature mechanism for recovery, offering users enhanced security without relying on conventional password or seed phrase methods.
Unlike standard wallets, Bitkey incorporates a non-custodial design that eradicates the reliance on seed phrases. Instead, it utilizes a 2-of-3 multi-signature scheme, providing users with two keys: one integrated into the mobile app for regular transactions and another stored in a separate hardware device for added security. The third key, held by Bitkey, acts as a recovery mechanism.
Lindsey Grossman, the Business Lead for Bitkey, emphasized the challenges users face with traditional seed phrases and stated, “With Bitkey, we wanted to build a product that helps bring everyone to self-custody, combining robust security and recovery options, with a simple customer experience that puts them in control of their money.”
Bitkey’s approach aligns with the industry trend of moving away from traditional seed phrases. Binance recently introduced a self-custody Web3 wallet using a shared key system, while Ledger, a prominent hardware wallet maker, implemented a shared key shard system for recovery. Bitkey, retaining the third key for the cryptocurrency owner, emphasizes its inability to access funds without the other two keys, ensuring user control and security.