A security-focused researcher, Kim In-soon at South’s Korea ET news, says the demand for the bitcoin hardware wallets in South Korea has been growing exponentially ever since the cryptocurrency users have been skeptical of investing and storing their funds at the local cryptocurrency exchanges.
Increasing Threat to Exchanges
In South Korea, many cryptocurrency exchanges including Bithumb have been subject to various data hacking attack in the previous couple of years while in other nations like UK, Europe and USA, these number of breaches have been relatively much lesser in number. Thus the loss of credibility in cryptocurrency exchange is also one thing to worry about for the crypto investors of South Korea.
Because of their reliance on a single point of failure, centralized cryptocurrency exchanges and wallet platforms are vulnerable to hacking attacks. Since cryptocurrency exchanges are managed by a group of administrators or a company, their servers, databases, and infrastructures are all managed centrally. This centralization makes it easy for the hackers to break into the system and steal user data, financial information and assets.
Hardware Wallets : The Solution
Thus, cold wallet looks like the best solution to this problem. Cold Wallet is a hardware wallet that looks like a USB storage device. There is a built-in dedicated password chip inside. Cold Wallet keeps your private key secure. It is physically separated from PC or smart phone. Virtual currency transfer, such as when you need to connect to a PC or smart phone is used.
The three major cryptocurrency hardware wallets targeting the local market are: Penta Cryptowallet, KeyPair, and TouchxWallet. Now with an even greater demand in the market, Ledger, the largest cryptocurrency hardware wallet manufacturer based in France, has decided to enter the South Korean market.
This particularly maybe a good time for hardware wallet designers where they can endorse their product in exchange of good business in return.
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