CryptoLab users and businessmen are suspicious of a strange new security feature unveiled by the US Coinbase this week.
Back up your funds with "only password"
In a blog published February 12, Coinbase announced traders and portfolio owners who can now back up their private keys using iCloud or Google Drive.
"You only have to remember the password that you decide to get your money back," the company said.
If you lose your device or log out of the app, you can easily regain access to your funds with your personal cloud (iCloud or Google Drive) and your password combination.
The purpose of the feature is to give users peace of mind in case of device loss or theft, reduce the chances of compromising with the wallet or exchange account.
"Private keys generated and stored on your mobile device are the only way to access your funds in the block chain," continued Coinbase.
Owners of "user-controlled portfolios" such as Coinbase Wallet sometimes lose their devices or fail to back up their 12-word recovery phrase in a safe place, thus losing money forever.
Without faith in the management of consumer risk
This move immediately triggered curiosity. Conventional wisdom in cryptic circles has always warned against storing sensitive information in the cloud – weak passwords and data management have sparked a number of attempts at hacking, some of which have succeeded.
Jesse Powell, Kraken's CEO, highlighted the poor cloud storage file as a sign that the Coinbase option could ultimately do more harm than good for consumers.
"I'm not a fan of consumer education for poor security. The data storage cloud, though handy, is constantly compromised, especially when carrying all SIM cards, "he says I wrote in Twitter, referring to hackers who get access to billing by fooling mobile operators to switch the victim's phone number to their own device.
99% chance people who unconsciously use it do not have strong enough passwords to withstand professional cracks.
I do not understand how you do not understand your target audience so badly?
– The Crypto Dog? (@TheCryptoDog) February 12, 2019
Consumers of the coinbase looked the same way unconvinced that the company received a lot of criticism in the social media.
What do you think about the Coinbase cloud storage option for private keys? Tell us in the comments below!
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