SafeWallet, which is a decentralized cryptocurrency wallet, announced on Friday that it is launching a new QR code-based user identification system, to replace mnemonic phrases and private keys.
The app, which is operated by China-based Cheetah Mobile, is going to use a two-tier security system to provide users access to their holdings. The first stage is going to have users scan their personalized and encrypted QR codes, while the second one will ask pre-set security questions.
QR code is highly encrypted
One representative of the company said that the QR code is highly encrypted so that it cannot be decrypted by scanning it with other software and SafeWallet does not store our QR code on its servers.
The firm claimed that the system is more secure than traditional mnemonic phrases, while also being more accessible for use. Notably, the system hopes to ensure that users are not writing their backup expressions down on paper that can be easily lost, as well as stolen or damaged.
SafeWallet also believes that the new system can also protect from the risks which arise if users send their passphrases to themselves, using email or maybe instant-messaging platforms that can contain malware or otherwise leak the messages to bad actors.
Answering security questions
While acknowledging the chances that someone could gain access to the QR code if it is kept on a device or in the cloud, the representative said that a hacker cannot access your assets with your QR code alone, but it is needed to know the answers to your security questions, additionally to your regular SafeWallet password.
The security questions are more specific than the standard questions so they could be challenging to guess, even if someone is a very close person to the user. It means that you are in complete control of your assets all of the time, explained the representative.
Besides, as a safeguard against theft, private keys are never going to appear as text in the wallet, they said while SafeWallet is also going to scan the devices of users for apps containing malicious code and notify users if anything suspicious is found.
Solving the usability problems
The product head of SafeWallet, named Kaiser Zhang said that the new tool means that there is no longer any obligation to memorize or transcribe long mnemonic phrases or private keys.
He also added that this complicated backup process was one of the significant barriers for users of cryptocurrency wallets, and particularly for those that are new to the industry. With this latest update, they are proud to say that they have finally resolved this usability problem without sacrificing any of the security capabilities which SafeWallet is known for.
Furthermore, the company granted third-party developers access to its security tools, permitting others to add some similar security features to their own projects. Being such, the company claimed that the innovative ID system of SafeWallet is going to serve as a bridge connecting decentralized and centralized systems, as well as resolving ease-of-use and security issues for blockchain products.