Secure

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<ul>
 <li>Coinbase’s Vaults upgrade uses MPC to split private keys, enhancing security by preventing any single party from controlling the key.</li>  
 <li>Coinbase now manages $270B in assets, a $80B increase, reflecting its growing role in digital asset custody and security.</li>  
 <li>The Vaults technology aims to eliminate single points of failure, ensuring key shares are held in distinct environments.</li> 
</ul>  
<p>Coinbase is estimating the use of its Vaults technology in further businesses—including, quite suitably, its institutional custody services—with a view to beefing it up. Coinbase cryptography lead Yehuda Lindell announced an update at the Science of Blockchain Conference on August 8 that aimed to improve security for both individual and institutional customers.</p>  
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<h3 class="wp-block-heading" id="h-enhanced-security-with-multiparty-computation-mpc"><strong>Enhanced Security with Multiparty Computation (MPC)</strong></h3>  
<p>Multiparty computation is used by vaults to secure <a href="https://cryptonewsland.com/chatgpt-enters-the-world-of-bitcoin-payments/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency transactions</a>. Rather than depending on a single private key, Vaults divides it into several shares and assigns these shares to various entities. Hence, no single party controls the entire key, enhancing security.</p>  
<p>Vaults are designed to eliminate single points of failure. Each key share resides in a distinct environment. For example, one share is stored offline, another is managed by human approvers, and a third is kept on MPC servers.&nbsp;</p>  
<p>Consequently, this separation ensures that attackers cannot easily gain full control of the assets. Lindell emphasizes that the goal is to ensure that keyholders never converge during the Vault’s lifecycle.</p>  
<h3 class="wp-block-heading" id="h-coinbase-s-growing-role-in-digital-asset-custody"><strong>Coinbase's Growing Role in Digital Asset Custody</strong></h3>  
<p><a href="https://help.coinbase.com/en/coinbase/getting-started/other/vaults-faq" target="_blank" rel="noopener noreferrer nofollow">Coinbase’s Vaults </a>will support various products, including custody and exchange services. This expansion reflects Coinbase’s growing role as a key custodian for digital assets. Notably, Coinbase holds crypto for nearly all issuers of spot crypto exchange-traded funds (ETFs), which have seen growth. In 2024, <a href="https://www.forbes.com/advisor/investing/cryptocurrency/spot-bitcoin-etfs/" target="_blank" rel="noopener noreferrer nofollow">spot Bitcoin ETFs </a>in the U.S. collectively manage over $55 billion in assets, as reported by Yahoo Finance.</p>  
<p>Coinbase's custodial assets have also grown significantly. In its August 1 earnings call, the company stated that Coinbase currently oversees almost $270 billion in user assets.&nbsp;</p>  
<p>Over the previous year, there has been a growth of $80 billion. Hence, Coinbase’s focus on enhancing security through Vaults is crucial given the high value and attractiveness of these assets to potential threats.</p>  
<p>Coinbase’s Vaults upgrade represents a step towards fortifying the security of <a href="https://cryptonewsland.com/trump-advocates-bitcoin-to-tackle-35/" target="_blank" rel="noopener noreferrer nofollow">digital asset </a>management. As the company continues to expand its product offerings, the implementation of MPC technology in Vaults underscores Coinbase’s commitment to protecting high-value assets from emerging threats.</p> 
<p>The post <a href="https://cryptonewsland.com/coinbase-enhances-vaults-to-secure-270b-in-digital-assets-amid-crypto-controversies/" rel="noopener noreferrer nofollow">Coinbase Enhances Vaults to Secure $270B in Digital Assets Amid Crypto Controversies</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Coinbase Enhances Vaults to Secure $270B in Digital Assets Amid Crypto Controversies

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