In the world of cryptocurrency, security is incredibly important, and with good reason. When it comes to managing your personal finances, having the best security practices in place should be the standard.
However, while previous wallets have employed high levels of security, they also came with equal levels of confusion and complexity for the end user.
The original from of security was a public and private key. The public key is, obviously, public. Anyone can see it. This is the key or “address” used when someone else wants to send you crypto.
The private key is basically your password. It’s a long 30-character string of random numbers and letters which is so secure because it’s impossible to guess. Most people will write out their private key on a piece of paper and hide it somewhere. The problem with this is that if you lose your private key, or write it incorrectly, you also lose access to your crypto permanently. Crypto is a decentralized form of currency and there is no customer support to contact if you can’t access your funds. Immediately, that crypto becomes worthless to anyone, because it cannot be accessed, and therefore cannot be exchanged for anything.
Clearly, this random string of characters on a piece of paper was just not going to cut it. Sure, it kept your crypto safe, but at what cost?
So, along came the “Seed-Phrase.” The seed-phrase replaced the private key with a string of 12 random words. Easier to remember and simpler to use, for sure, but there was still the problem where if you loose your seed phrase, you loose access to your funds forever.
Finally, the “Smart Contract Wallet” arrived, which is a revolutionary new way to manage your crypto. Digifox is one of the first few wallets to implement this technology. Instead of keeping track of a private key or seed phrase, a smart contract wallet uses two-factor authentication to secure your account. We use your phone number and email address, two methods of verification you and only you should have access to, and create a public/private key pair on your local device. This single device is called an “owner” and it holds your private and public key for you, so you don’t have to worry about loosing it.
But what happens if you need to change devices and move your account? Since that first device has the keys and is the only one that can access your account, what happens if you loose your phone or it breaks?
That’s where the two factor authentication comes into play. Basically, as long as you can prove that you are the owner of the account through codes sent to your phone number and email address through the “Account Recovery” process, public and private codes are generated on the new device, and it becomes the owner.
So what does this mean?
Basically, no one can access your account or your funds without you. Not Digifox, not your best friend, no one. You have complete control as the smart contract wallet is still decentralized, but you’re not at risk of loosing literally everything if you misplace your private key or seed phrase.
Purchasing and holding crypto has never been easier, smarter, or more secure for an individual.