by Joseph Young
Hardware bitcoin wallet developer and manufacturer Case Inc has recently partnered with Digital Asset Holdings, a Bitcoin startup led by former JP Morgan executive Blythe Masters, to implement their biometric security technology to facilitate digitally issued securities on the Bitcoin blockchain.
Case Inc.’s biometric data security and authorization system was first introduced in May of 2015, at TechCrunch’s Disrupt NY, a startup competition sponsored by tech giants including IBM and billion-dollar startups like Eventbrite and Korea’s food delivery app, Nation of Delivery.
The company’s first product, Case Bitcoin Hardware Wallet, contains a fingerprint sensor, a camera and a built-in GSM chip. To send a bitcoin transaction, users are required to scan the QR code with the built-in camera and verify through the fingerprint sensor. The synergy between Case’s biometric data security system and the wallet’s implementation of multi-signature technology creates what TechCrunch calls, “an insanely secure hardware bitcoin wallet.”
Securing Assets on the Blockchain
Masters’ Digital Asset Holdings integrates the technology of Case to facilitate and settle assets on the Bitcoin blockchain securely.
“Bitcoin and other distributed ledger technologies facilitate the transfer of digital financial assets within cryptographically secured, immutable environments. Case acts as a secure signing device that streamlines this process without increasing the risk of compromising sensitive data,” said Case CEO Melanie Shapiro in the company’s first white paper, Securing Digital Assets on the Blockchain.
Transferring assets on the blockchain requires a high level of internal controls to ensure the integrity of issued assets. The Information Systems Audit and Controls Association highlights five main factors: audit and insurance, risk management, information security, regulation and compliance, and governance of enterprise IT.
A vital component of a proper distribution of financial assets is compliance with the guidelines referenced above. The Federal Financial Institutions Examination Council suggests the use of synchronized token systems with multi-factor authentication to ensure the efficiency of internal controls.
However, Case’s authentication system surpasses the capabilities of the token systems currently used by traditional trading platforms. The Case team explains that their authentication system supports four critical factors:
- Who you are – Biometric verification
- What you have – The key embedded on the device
- What you know – Verification of pin or other security information
- Where you are – Geo-fencing based on device location
Case’s biometric security system requires different authentication methods to sign transactions, as it uses multiple keys to sign and verify transactions and assets.
According to Case,“Requiring multiple keys that are each secured by a different authentication factor increases security by eliminating single points of failure for any one authorized individual. Requiring multiple individuals to sign a transaction in this way creates secure channels for the digital transfer of financial assets on a trusted distributed ledger.”
The company’s multi-signature technology–based authentication system has recently been used to issue a portion of Pivit’s US$5 million funding round on Digital Asset Holdings’ distributed ledger platform.