RE: Steem's ecosystem needs to take the lesson of Bitfinex to heart. Bittrex and Poloniex NEED cold wallets!

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Steem's ecosystem needs to take the lesson of Bitfinex to heart. Bittrex and Poloniex NEED cold wallets!

in security •  8 years ago 

We are working on a solution where exchanges can set daily rate limits on withdraw activity from their account. Their "warm storage account" could be online allowing them to withdraw X% per day to their "hot storage account".

The downside from a user's perspective is that attempts to withdraw your funds would be rate limited by the same algorithm. But at least it would be transparent why there is a delay in withdrawal.

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  ·  8 years ago (edited)

This is really good to hear, but I'd still hope to see a third-tier cold storage with manual offline transactions to refill the hot/warm wallets. Forgive me if there's already a method, but are offline signing tools on the to-do list anywhere, by the way?

A possible solution would be to add 2 factor authorization. This would be great for users and exchanges could move a majority of funds to an account secured by a secondary hardware PIN.

The downside from a user's perspective is that attempts to withdraw your funds would be rate limited by the same algorithm.

As long as the default is hot storage and people have to opt in for warm storage (much like Coinbase does there vault), I think this would be a great feature to add.

I agree with your opinion @lukestokes

Maybe the limit could be increased substantially for people that have 2fa?

Still 2FA is better. This makes very little sense. Security should come first.