【Keystone】Highly secure cold wallet / Never connected online, only exchange necessary information with online environment to complete transactions securely / @KeystoneWallet

Create a wallet at Keystone and connect to MetaMask to use it.

Good morning.
Mitsui from web3 researcher.

Today we researched "Keystone".

🔵What is Keystone?
👛The difference between hot and cold wallets
⚙️Keystonefeatures and specific functions
🖐️Specific uses
💬Sounds very useful

🔵What is Keystone?

Keystone is a highly secure cold wallet (hardware wallet) for crypto assets.

Originally developed in 2018 by Chinese startupCobo, the "Cobo Vault" devicewas the predecessor of the Cobo Vault, which was rebranded to the Keystone brand in June 2021.The original Cobo Vault offered military-grade security and robustness, and the current Keystone series continues that technology while making it more user-friendly.

Before explaining Keystone in detail, we would like to reiterate here the difference between a cold wallet (hardware wallet) and a hot wallet for crypto assets.

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👛Differences between hot and cold wallets

◼️ Hot Wallet

• Hot Walletis a crypto asset wallet that is used while permanently connected to the Internet.

• The hot wallet used by web3 can be easily accessed via browser extensions or smartphone apps to send and receive tokens and work smoothly with DApps (decentralized applications).

Benefits

1. Ease of use and accessibility.

   • Available as a browser extension or smartphone app, you can immediately check your balance, transfer money, and interact with DApps.

   • Example: like MetaMask, you can open your wallet and make transactions with one click.

2. Quick transaction processing

   • Connected to the Internet, transactions take less time and can be executed in real time.

Disadvantages

1. High security risk

   • The risk of hacking and malware is high because the private key is stored on a device under internet connection.

   • There is also the risk of being directed to phishing sites, and the possibility of losing assets if the private key or seed phrase is accidentally entered from the wallet.

2. Complicated administration

   • When dealing with many addresses and blockchains, it may be necessary to manage multiple hot wallets.

   • Additional security-related measures, such as antivirus and two-step authentication, are also important to keep hot wallets secure.

Specific examples.

• MetaMask

  • A leading browser-extended wallet that supports EVM compatible chains such as Ethereum and Polygon.

  • Very easy to use DApps and easy to integrate with a wide range of web3 services such as DeFi, NFT, and games.

• Trust Wallet

  • Smartphone app with support for many blockchains.

  • Access to DeFi and NFT features.

• Phantom

  • Browser extension & smartphone app wallet for the Solana chain.

  • Easy to manage Solana tokens and NFTs, similar in feel to MetaMask.

◼️What is Cold Wallet

• Cold Walletis a generic term for a wallet that stores private keys in an environment physically disconnected from the Internet.

• This includes hardware wallets (physical devices) and paper wallets (private keys printed on paper).

Benefits.

1. High security.

   • Because private keys are managed offline, the risk of hacking is extremely low.

   • Unless the terminal itself is hacked, the probability of private key leakage is greatly reduced.

2. Suitable for long-term storage

   • Ideal for safekeeping assets that are not traded frequently.

   • Often used for "long-term investments" or "safekeeping of important NFT collections".

Disadvantages.

1. Slightly more complicated operation.

   • It needs to be linked to a physical device or software, and must be connected via USB or Bluetooth for each transaction.

   • Setup and operation hurdles are high for first-time users.

2. Possible delay in emergency response

   • In the market for crypto assets, where prices fluctuate rapidly, it is not possible to access the market quickly when you want to buy or sell quickly.

   • Logging in and signing in can be time consuming, and opportunities can be missed.

Specific examples

• Ledger Series.

  • Hardware wallets such as Ledger Nano S / Nano X are typical examples.

  • A system that works with a PC or smartphone via USB or Bluetooth connection (Nano X) to check and approve on the device at the time of transaction signing.

• Trezor Series

  • A well-established manufacturer of hardware wallets along with Ledger.

  • Trezor Model One and Model T are available, as well as many other compatible chains and coins.

• Paper Wallet

  • A method of managing private keys and seed phrases offline by printing them on paper.

  • Complete offline storage, but requires physical risk management such as water damage or loss.

◼️Use of hot and cold wallets

1. Hot wallet for everyday use (active trading)

   • For daily use of DApps, such as DeFi, NFT trading, gaming, etc., hot wallets for instant access are useful.

2. Cold wallet for large assets and long-term storage

   • Cold wallets are preferable for minimizing hacking risk or for crypto assets that are long-term investments that you have little or no plans to move.

3. Best to use two different wallets.

   • Like a real wallet, it is more efficient and safer to use a "hot wallet" for daily use and a "cold wallet" for long-term storage.

The above is the difference between a hot wallet and a cold wallet.If you keep this premise in mind, you will have a better understanding of Keystone's features.

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⚙️Keystone features and specific functions

In this section, we will explain the specific features of Keystone and its main characteristics.