Do We Store Your Crypto Assets Securely?

Max Sapelov, CoinLoan Co-founder and CTO explains assets and platform security

CoinLoan
CoinLoan
May 31, 2019 · 6 min read
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  • And discuss our ten-level approach on platform security.

CoinLoan’s Assets Security Framework

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“If the system can process crypto-withdrawals automatically, then it’s vulnerable to hacks — without exception.”

Due to this principle, we are not storing any private keys on network-connected devices, and that is why we are processing all the withdrawals manually. However, manual processing means that small processing delays may occur. Even though manual processing means that small processing delays may occur, your security is our top priority.

CoinLoan’s Assets Security Principles:

  • Now we store customer’s assets at qualified and the most trusted custodian BitGo with the insurance for $100 million from Lloyd’s.
  • CoinLoan performs all operations with crypto assets in accordance with Cryptocurrency Security Standard (CCSS). It’s a security framework which covers series of strict security requirements of a system that operates with cryptocurrencies.
  • All cryptoassets are stored in offline, cold, multi-signature wallets.
  • Transaction signing only happens offline on separate devices that have never been connected to the network, and this process involves several people.
  • The multi-signature process involves several keys (N) with a required quorum of any (M) keys. For example, you need 3 out of 5 keys or 5 out of 8 keys to conduct a transaction. Thus, it’s not possible to sign the transaction using a single individual. Also, this system ensures that, if you lose one of the multi-sig keys, you will never lose control over your assets completely.
  • We store encrypted parts of the keys in a geographically-distributed manner in the banks’ safe deposit boxes to prevent potential loss of the keys due to natural disasters, including floods, earthquakes, fires, etc.

Our Most Frequently-Asked Question

Why not store each loan’s collateral in a multi-sig wallet that requires 2 out of 3 keys — with the first from a borrower, the second from a lender, and the third from the platform?


The Ten Security Layers of CoinLoan’s Platform

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This video shows how ‘unpickable’ front door lock doesn’t mean your house is fully protected from security holes.

CoinLoan

CoinLoan is a P2P lending platform for cryptoassets backed…

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