Home / Our Services / History and Demand

History And Demand Of Custody Services

How custody technology has evolved in the last decade
The history of cryptocurrency storage is a fascinating journey that has evolved alongside the development of digital currencies themselves. Cryptocurrencies emerged as a revolutionary concept with the introduction of Bitcoin in 2009, but the issue of securely storing these digital assets quickly became a significant concern. In the early days of cryptocurrencies, users relied heavily on software wallets. These wallets were typically downloadable applications that stored private keys and allowed users to interact with the blockchain. While convenient, software wallets faced numerous security risks, as they were vulnerable to malware, hacking, and data loss due to hardware failures or user errors. As the value of cryptocurrencies soared and the number of users increased, the need for more secure storage options became evident. In 2011, hardware wallets were introduced as a response to the growing security concerns. Hardware wallets are physical devices designed to store private keys offline, making them resistant to online attacks. This added layer of security made hardware wallets a popular choice among cryptocurrency enthusiasts. In the following years, mobile wallets emerged, offering users the convenience of accessing their cryptocurrencies on-the-go through smartphone applications. While more practical for everyday transactions, mobile wallets still faced the challenge of being susceptible to mobile malware and phishing attacks. The concept of paper wallets also came into play during this period. Paper wallets involved generating and printing out the private keys on a physical piece of paper. Since the keys were never stored online, this method offered a high level of security. However, paper wallets posed the risk of physical damage, loss, or theft. Another significant advancement in cryptocurrency storage was the introduction of multisign wallets in 2012. Multisign, short for multi-signature, required multiple private keys to authorize transactions. This increased security by adding an extra layer of verification and reduced the risk of a single point of failure. Despite the progress in cryptocurrency storage solutions, the industry continued to face security breaches, exchange hacks, and instances of users losing access to their wallets. These incidents highlighted the need for more robust and user-friendly storage options. In recent years, the concept of custodial wallets gained traction. Custodial wallets involve third-party service providers managing users' private keys on their behalf. While this introduced added convenience and ease of use, it also raised concerns regarding trust and control over one's digital assets. The infamous Mt. Gox exchange hack in 2014 further underscored the risks associated with centralized custodial services. To address these concerns, the concept of decentralized finance (DeFi) emerged, providing users with non-custodial options. DeFi platforms utilize smart contracts and blockchain technology to enable peer-to-peer transactions and allow users to retain full control over their private keys. This approach marked a significant step towards empowering individuals to be their own custodians, enhancing security and privacy. As the cryptocurrency landscape continues to evolve, the industry strives to strike a balance between security, accessibility, and user-friendliness. Innovations in hardware wallets, advancements in multisign technology, and the proliferation of decentralized storage solutions are likely to shape the future of cryptocurrency storage, ensuring that users can confidently manage and protect their digital assets in a rapidly changing financial landscape. Two-factor authentication (2FA) is a security measure that requires you to enter a second form of authentication in addition to your password. This could be a code sent to your phone or an app like Google Authenticator. By using 2FA, you make it much more difficult for someone to access your account even if they have your password.

We strive to be the trusted partner for your digital abouts