- Block announced on Friday that its new hardware wallet would feature fingerprint access
- Critics pointed out the security flaws with such a design
- Block’s plan for “assisted self-custody” could be just what the space needs, if done right
When Block announced last year that it was designing a cryptocurrency hardware wallet, the crypto world got rather excited. Promising to be a blend of “availability and security”, it seemed that the days of seed phrases and tricky buttons was over. However, news that the Block hardware wallet will feature fingerprint access went over very badly last week, with many pointing to the security implications and how it undermined the concept of a hardware wallet. However, with its knowledge of the crypto space it is unlikely that Block has misunderstood the concept of security of hardware wallets, and critics should wait to see the final version before judging it too harshly.
Block’s “Assisted Self-custody” Wallet Attracts Criticism
Block announced intentions to build a hardware crypto wallet back in July last year when it was still called Square, a wallet it said would be a “assisted self-custody” design with a blend of “availability and security”. This is in contrast to the fiddly hardware wallets that currently exist.
It was always clear that the wallet would therefore need a much more accessible means of entry and so it has proved, with the company announcing on Friday that a fingerprint sensor would replace traditional means of securing a wallet:
We believe PINs, passwords, and seed phrases are confusing and often not secure given the workarounds normal people have to create given all the friction. This compounds when the need for those passwords are more rare.
The news that a holder’s cryptocurrency would only be secured with a fingerprint did not go down well in the crypto space, with many noting that that was far too insecure a method to hold large holdings. Block anticipated this, adding that it will “evaluate additional access methods that customers could opt into” as development continues.
Multi-sig Sign In Could Revolutionize Hardware Wallets
The truth may not be that straightforward however. Block said that the “primary interface” would be the mobile app, which of course most people secure with a fingerprint, which is why Block want to utilize the same methodology.
It is unlikely that a company so involved in the crypto space would allow full access to a hardware wallet with just a fingerprint, so there will very likely be some multi-sig combination with the mobile app and the wallet in order to gain entry. This could take the form of a small portion of funds being available with the fingerprint but the bulk accessible by other more difficult means.
Block is clearly trying to make the concept of a hardware wallet more user friendly, but in doing so they risk ruining the entire ethos of a hardware wallet…unless they can get it perfect.
