Sony Launches Contactless Cold Crypto Wallet
October 26, 2018 1:45 pm
Sony, the Japanese tech giant has already made headlines in the crypto world in the past. The company has already applied for multiple blockchain-related patents. The Sony Computer Science Laboratories (CSL) announced that they have developed a contactless digital asset hardware wallet.
The wallet will employ Sony’s own integrated circuit (IC) card-based radio frequency identification (RFID) system. The company claimed that their wallet is a lot safer than the online (hot) storage of cryptocurrencies. This is due to the fact that the wallet is an offline (cold) wallet and features mutual authentication and encrypted communication.
“In online wallets such as cryptocurrency exchange websites or services, the private key is managed by the online wallet operator, not the user, meaning t hat users are able to access to the wallet itself, but do not manage their personal private keys.” CSL said in a statement.
“Therefore, when an online server managing a user’s private key receives unauthorized access and the private key leaks, there is a risk that the cryptocurrency held by the user will be used by other.”
Sony’s dedicated wallet will facilitate crypto trading while also offering the management of private keys in transactions. As this product also provides control over keys, it will be a boon for the distributed ledger technology (DLT) market.
Sony has historically used their IC card technology in its FeliCa cards. A chip and an antenna are embedded in every product, allowing transactions to happen within 0.1 seconds.
Sony’s wallet comes at a time when multiple companies across the globe are cracking down on the cryptocurrency market. There have been increased concerns among governments due to the steep rise in the number of crypto-related security breaches.
The Japanese Financial Services Agency (FSA) also enforced tighter rules on digital currency transactions through the introduction of a new framework. This move was a result of the $530 million Coincheck hack that took place in January this year. The new rules also include a ban on hot storage of digital assets.