In a word it is "Bullet-Proof", or in another word "Unhackable"!
Our platform provider The Prepared Company uses end-to-end military-grade encryption, enforces two-factor authentication, and uses social engineering + legal proof prior to triggering release of your Digital Assets.
Our Digital Asset Safe Custody Vault was built by experts who are using it themselves to protect + safeguard their own Digital Assets.
Each client has their own unique key created when they sign up – this encryption key is used to encrypt their Digital Assets.
Only your unique encryption key can read or write data for you.
Once the data enters your account, it is then encrypted again with our Blue Ocean Law Group℠ encryption key.
This means one would now need both your unique user key and our application key to read your data.
Once your encrypted data is stored, we encrypt it a third time using a database key.
This effectively puts the key to the Digital Safe Custody Vault – inside the vault.
At a certain point, cyber security boils down to individuals also embracing safe practices.
While a lot of businesses make these optional – we do not.
✅ We enforce Two-Factor Authentication (which means merely having your username and password is not enough to gain access to your account); and
✅ Routinely check your data against historic 3rd party data breaches and hacks.
✅ We don’t force you to change your password every 6 months, but we do ask you to verify each time a new device is used to log in to your account.
If your Digital Assets are extremely valuable or sensitive, it is possible to add an additional layer of security by adopting the practice of Hybrid Storage™.
Hybrid Storage™ involves storing part of a Cryptocurrency / NFT (Non-Fungible Token) Encryption Key or Password digitally, and other parts physically (or vice-versa).
Best practice would suggest that the Encryption Key or Password be divided into at least 4 parts for maximum protection.
The advantage gained by using Hybrid Storage™ is that if either the Physical or Digital Asset Safe Custody Vault are breached by criminals ➲ there is not enough information to take control of / or deal with your Digital Asset.
Additionally, when the concept of Hybrid Storage™ is adopted, it is possible for multiple physical backup copies of the partial Encryption Key or Password to be physically stored (even outside of the Physical Safe Custody Vault) without substantially increasing risk.
Each partial Encryption Key or Password by itself is no good without the other parts of the Encryption Key or Password which would be safely stored in other Physical Safe Custody Vault locations as well as in the Digital Asset Safe Custody Vault.
A less effective, but also much more convenient + simpler solution would be to use a Hardware Wallet and store the location of the Hardware Wallet and its access key within the Digital Asset Safe Custody Vault.
For further information please read our FAQ: How is a Hardware Wallet used to Store Cryptocurrency?
The most appropriate additional security solution will depend on your need for convenience / level of risk tolerance.
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.