What is Bitcoin Vault?
Bitcoin Vault is a token launched in 2019 that uses the SHA-256 hashing algorithm. Its main purpose is to establish security features that the original Bitcoin does not have. It is said to have superior safety.
As you know, when you make transactions with most cryptocurrencies including Bitcoin, you are not able to recover it if it’s incorrect. So if you sent your tokens to a wrong address or if your cryptocurrencies were hacked, consider your tokens gone. Undoing is not an option.
“According to CipherTrace’s Spring 2020 Cryptocurrency Crime and Anti-Money Laundering Report, the first 5 months of 2020 had already seen $1.36 billion dollars worth of crypto thefts , hacks and fraud. “
However, with Bitcoin Vault, the token aims to allow users to reverse the transactions within 24 hours using their 3 key security feature.
In addition, people always tend to make mistakes when sending cryptocurrencies to new addresses. This not only wastes money but also time.
Bitcoin Vault aims to use the three key security solutions to cancel or reverse transactions on the Blockchain.
Bitcoin Vault Ecosystem has 3 apps stores in-house to manage and store the Bitcoin Vault tokens ; Gold Wallet, Key Generator , Electrum Wallet
Bitcoin Vault uses Proof-of-Work as it’s consensus mechanism
Bitcoin Vault’s Special Sauce
Bitcoin Vault’s entire utility revolves around their 3 Key Security system.
This system mainly solves three issues :
Hacks or unauthorized access to private keys
Human error when sending cryptos to wrong wallet assets, typing incorrect amounts, and other errors.
Bugs, technical errors related to the cryptocurrency software or exchange.
As the name suggests, there are three keys that play a part in this security feature as compared to other cryptocurrencies that usually only have one private key.
Users will have to generate three Elliptic Curve Digital Signature Algorithm (ECDSA) key. One key is stored in the app while the other two is managed by the user.
The three keys are standard transaction key, cancel transaction key and fast transaction key.
Standard Transaction Key
This key allows access to the wallet and to transfer funds. Using this key, you can send funds from your wallet, however the transfer time would be 24 hours. Bitcoin Vault takes 24 hours to create the 144 blocks that are required to approve the transaction.
Cancel Transaction Key
This key allows you to cancel a transaction within 24 hours at the slightest suspicion of hacks, fraud or a mistake. When this key is utilized, all the funds would be moved to a new wallet and a new set of keys would be provided.
It might not be a good idea to use this cancel key as you might be changing wallets quite often.
Fast Transaction Key
This key allows you to send cryptocurrencies via a quick transfer if you have a trusted recipient. This key puts your transfer on the fast lane instead of having to wait 24 hours.
Bitcoin Vault’s Ecosystem
Bitcoin Vault has 3 in-house apps. These apps play a part in storing, managing and exchanging the tokens.
The Gold wallet is able to create another 3 wallets within its app. The secure wallet, cancel transaction wallet and secure fast wallet. Users this wallet to send or receive tokens as well as to store their tokens. The Gold wallet also serves as an authenticator for the Electrum Vault desktop app and has a two-factor authentication key.
This is an app that is web-based which helps generate the individual public and private keys to set up the wallets or do transactions. These keys are stored offline to prevent potential hacking over the internet.
This is a desktop app that serves as an open-source Ethereum wallet and it does everything the Gold wallet can do.
Bitcoin Vault’s Way Of Approving Transactions
Bitcoin Vault uses proof of work as its consensus mechanism.
To put it in simple terms, Proof-of-Work (PoW) is when miners have to compete to be the fastest to solve a complex mathematical puzzle. The winner who solves it first gets to add a new block to the blockchain. Once this transaction is validated by other miners, the miner gets rewarded with tokens.
Bitcoin Vault has also adjusted to accept merged mining after an upgrade to its protocol. Merged mining is also known as an Auxiliary Proof-of Work or just a modified version of PoW.
The Symbiotic Relationship Of Merged Mining
Merged mining in simple words is just being able to mine two cryptocurrencies without using additional computational power or sacrificing the quality of work.
For this to work, the two tokens being mined have to use the same computational power and have the same algorithms, in this case the SHA-256. Since Bitcoin fits the criteria, merged mining for Bitcoin Vault is done together with Bitcoin.
It is said that by doing this, Bitcoin Vault can increase its security by leveraging hashing power from Bitcoin and reduce attacks on its blockchain.
At the same time, miners can get rewards in both Bitcoin and Bitcoin Vault cryptos.
What Can You Do With The Bitcoin Vault Token?
Bitcoin Vault has a supply of 21 million coins and it has an average mining time of 10 minutes.
Bitcoin Vault can be used for transaction purposes especially when sending large sums of money to an address is less trusted. While the transaction fees may be higher, the fees make up for the safety that is provided with the token in case anything goes wrong.
This use case aligns well with larger institutions like banks.
In addition, Bitcoin Vault is now listed on Coingate and thus, can be used at all brick and mortar stores that use Coingate merchant services which is at over 4000 businesses.
Eyal Avramovich, Bitcoin Vault’s Founder From Poland
Eyal is the founder of Bitcoin Vault and this isn’t his first venture. In fact, he had launched ELCASH and is also the CEO of MineBest.
He has a degree in electronics engineering and has come up with numerous inventions such as a massage vehicle robot that could travel across the body of a person. He even came up with a rotating bathroom scale.
“Eyal is a fan of the movies “Back to the Future” and “Iron Man”
In 2017, he pivoted into the world of blockchain and founded MineBest which is a company that specializes in professional hosting services for the mining of Bitcoin and altcoins.
He had launched the Bitcoin Vault not long after.
Bitcoin Vault Development Plans
The Bitcoin Vault development had been divided into 6 workstreams as follows:
To participate in Ethereum’s Dapp and add a wrapped Bitcoin Vault Token in Ethereum 2.0.
To verify the blockchain integrity, strengthen codes, identify bugs and holes. External and internal penetration tests are also conducted.
User Experience Upgrades
Upgrade and develop applications based on the feedback from users.
Focus on market adoption of new products associated with Bitcoin Vault’s ecosystem and token.
Launch global awareness campaigns for engagement, seek partnerships and invest in quantum research.
Connect and engage with the token community and offer options for hodlers. Long term goals focused on quantum computing and how it influences the cryptography of blockchains.
Bitcoin Vault’s Association with Mining City
Mining City is a company that offers plans that allows users to purchase hash power to mine Bitcoin. Users receive mining rewards for having access to the hash power and the company mines on the user’s behalf.
The rewards are paid in Bitcoin Vault.
The company is based in Cyprus which has better cryptocurrency regulations and mines in countries where electricity is cheaper.
MineBest, which is owned by the CEO of Bitcoin Vault, is a main partner of Mining City providing equipment and maintenance services for Mining City.
There has been some call into question the legitimacy and trustworthiness of Mining City. Users are advised to do their due diligence when investing into cryptocurrency products and companies.
How to buy Bitcoin Vault?
You can also buy via IndaCoin here.
Check out our list of exchanges here!