Main page Analytics, Bitcoin, Cryptocurrency
Hot topic
Oct. 23, 2018

Square payment startup published the source code of offline storage for bitcoins SubZero, which has hardware support. Documentation appeared on the GitHub.

As the company explains, its solution is based on a Hardware Security Module (HSM), which is a specialized device that is commonly used in the payments industry for storing cryptographic information that is not intended for public distribution, including keys, and perform operations with them.

The company has developed a technology that allows users to send bitcoin from a hot wallet to a cold storage at any time. However, when users do the opposite, the program requires additional identification in order to initiate a transaction that delivers bitcoin from offline storage to online.

Square uses multi signatures to move funds. This means that the withdrawal of bitcoins from a cold wallet requires the presence of signatures of several people who have the appropriate authority. They use a combination of smart cards and passwords to gain access to the system. SubZero translates coins only to addresses that belong to Square. Representatives of the company said that it is possible that in the future they will adapt their product to other cryptoprotocols.

All interactions during the signing of transactions are carried out using QR codes. Ceremony participants interact with servers located in secret geographic locations and loaded using a Linux Live DVD, which provides an additional level of protection.

  • A Java application is launched on the server that provides access to the Subzero interface.
  • The interface allows users to scan QR codes, view transactions and transfer private keys.
  • The application communicates with the HSM, on which Subzero Core runs.
  • The program code that implements the functionality of the application is never transferred beyond the limits of HSM and Subzero Core.

WHY IS IT IMPORTANT?

The payment processing platform Square started working with bitcoin as early as 2014, and last Fall the possibility of buying the first cryptocurrency appeared in the Cash application. The application is very popular among users. The Square audience grew rapidly even during the fall of the cryptocurrency market capitalization.

In July, the Financial Services Department of New York issued a startup BitLicens Square license, which gave the company the right to work in the state. As a result, residents of all 50 American states were able to buy and sell bitcoins through the Cash App.

According to some crypto experts, the news about obtaining a BitLicense has become joyful not only for residents of New York. Analysts believe this has positively impacted the value of the entire digital money market.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

Read also:
Strawberry Cake Media Corp. © 2024 Cookie Policy Editorial team Archive

ihodl.com is an illustrated edition about cryptocurrencies and financial markets.
Every day we publish the best materials for everyone interested in economy.