Coinbase Wallet users can now use cloud storage to back up encrypted private keys
One of the leading crypto exchanges in the world, San Francisco-based Coinbase announced on Tuesday that users can now back up an encrypted version of their Coinbase Wallet’s private keys to their personal cloud storage accounts, using either Google Drive or iCloud. The cryptocurrency exchange made this announcement in its Medium blog.
As per the blog, this new feature will help users to safeguard their funds even if they lose their device or misplace their private keys.
The blog further notes:
“The private keys generated and stored on your mobile device are the only way to access your funds on the blockchain. Owners of ‘user-controlled wallets’ like Coinbase Wallet sometimes lose their devices or fail to back up their 12-word recovery phrase in a safe place, thus losing their funds forever.”
This latest feature will help users to store an encrypted copy of their recovery phrase on their personal cloud account. They only need to remember the password. If in any case the device is lost or the user gets signed out of the app, he can access his funds using his cloud account and the password. In short, it just cuts down on the hassle and gives them the security of the cloud backup to rely upon.
Coinbase makes it clear that neither the exchange nor the cloud service provider will have access to the user funds and it can be unlocked by the password only known to the user. The backup is encrypted with AES-256-GCM encryption and can be accessed only by the Coinbase Wallet mobile app.
As of now, the cloud backup feature supports iCloud on iOS devices and Google Drive on Android devices and the exchange is planning to add other cloud services in the near future.
Earlier this month, Coinbase added support for Bitcoin [BTC]. Bitcoin is the latest addition to the exchange’s wallet app and it already supports Ethereum [ETH] and other ERC 20 tokens. The exchange is working to add support for other leading cryptocurrencies like Bitcoin Cash [BCH] and Litecoin [LTC].
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