In line with an official ‘announcement‘, Coinbase wallet users are now able to save their private keys on Google Drive or iCloud. Coinbase stated that permitting users to save their keys to a cloud offers a safeguard against the lost keys, and also assist them in situations of misplaced keys.
Explaining further, the announcement adds:
“The private keys generated and held on your mobile device are the sole way to access your funds on the blockchain. Owners of ‘user-controlled wallets’ like Coinbase wallet typically lose their devices or fail to backup their 12 word recovery phrase in an exceedingly safe place, therefore losing their funds forever.”
Now, users of Coinbase wallet store an encrypted copy of the recovery phrase on their cloud accounts. Coinbase noted that neither they nor the cloud services can have access to user funds, as recovery phrase keys is unlocked by a password solely known to the user. The backup is supposedly encrypted with AES-256-GCM encoding algorithm, that is just accessible via the wallet mobile application.
Coinbase additionally added that, moreover to Google Drive and iCloud, they’ll expand support to other clouds within the future. This feature is an opt-in service that doesn’t replace or follow the original recovery choice.
Just earlier this month, renowned Canadian cryptocurrency exchange named ‘QuadrigaCX’ ‘filed‘ for creditor protection following the death of its founder named ‘Gerald Cotten’. Cotten was ‘reportedly‘ the only executive answerable for the exchange’s keys and cold wallets, and following his death, the exchange had been unable to access around $145 Mln in digital assets, it supposedly require.
Recently yesterday, it was revealed in an Ernst & Young report that the ‘Big Four’ audit firm — that was named an observer to Quadriga’s creditor protection proceedings — has recovered many electronic devices employed by Cotten, together with encrypted USB keys.
In January, Coinbase revealed resources for its clients within the U.S. to claim crypto trades on their taxes. The cryptocurrency exchange and digital wallet service added an academic guide on crypto and taxes, additionally to integrate with its new tax software named ‘TurboTax’.