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. While this may be confusing, please note that we are not a wallet service, and your security is our top priority.
Alternatively, we are processing deposit operations automatically because this can be done with public keys (addresses) only on our servers. Further, I can confirm that we have one of the fastest crypto-deposit processing systems on the market.
CoinLoan’s Assets Security Principles:
- 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.
Click here to read more about assets and platform security on the CoinLoan platform.