Bitkey, the new brainchild from Block Inc. led by Jack Dorsey, is a self-custody bitcoin wallet that combines the convenience of an exchange with the security of a hardware wallet. It comes with three parts — a mobile app to make transactions easily on the phone, a hardware device to protect savings securely offline, and a set of recovery tools in case customers lose their phone, hardware, or both.
Bitkey offers an extra layer of security for your Bitcoin with its 2-of-3 multi-signature system. This means two separate private keys are required to authorize a transaction. One key is stored on your phone, another on a dedicated hardware device, and the third is held by Bitkey on their servers. Since any transaction requires two out of three keys, your funds remain secure even if one key is compromised.
● When you’re out and about, you can enjoy safe spending with an optional daily limit set directly on your phone. This co-signing feature uses both your phone and the server key to approve transactions up to your chosen amount. So, even if someone gets hold of your phone, they won’t be able to drain your entire account because transactions require both keys. This lets you spend confidently on the go.
● Delay and Notify – for when you lose your hardware or when you lose both the key stored on your phone and your cloud backup