Thursday, January 23, 2020

Hardware Wallets Cannot Achieve Institutional Adoption; Ledger CEO

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on damolabada@gmail.com

Regardless of the many flaws that have trailed cryptocurrencies over the years, the crypto industry has indeed come a long way since its introduction ten years ago. Cryptocurrency and blockchain have been embraced by governments, banks, and individuals, even with the high volatility associated with it. One key factor that has pushed the cryptocurrency market towards success is access to secure storage.

Recently, the CEO of Ledger – a crypto hardware wallet firm – Eric Larchevêque was engaged in an interview to discuss the evolution of secure crypto storage and the efforts his company is making towards supporting the crypto industry.

The Crypto Ecosystem Needs More than Just Technology

Ledger was created with a foundational technology that is based on secure hardware, according to Larchevêque. He went on to say that “From the beginning, we wanted to build a professional solution that could get certified. We believe that the only way for the cryptocurrency industry to become professional (like to get more mature and scale), we need to have standardization, we need to have certification, we need to have some kind of technological rules to build trust.”

Despite all this, it comes as a surprise that Larchevêque would say that technology alone cannot guarantee the security of the cryptocurrency ecosystem, a statement that sounds contrary to his previous words. Explaining this, he disclosed that his company has partnered with regulators, especially when it concerns enterprise-grade solutions, to provide the best services for people because technology alone will not be sufficient.

“All these security issues can mostly be solved by technology, but to make sure that people use the right technology, you need regulation. So, it’s a combination of both.”

Cold Storage to Depend On Smartphones Soon

Currently, the sure way to keep cryptocurrencies secure is by using a hardware wallet, because it offers isolation–cold storage that is readily available.

However, hardware wallets have a flaw, and that is the inability “to scale for hundreds of millions or billions of users” because not everyone will want to purchase a hardware wallet.

Therefore, in 5 to 10 years, smartphones will be equipped with the necessary technology to provide the right level of security, according to Larchevêque. He also included that hardware wallets will not be totally phased out.

“[They] will still exist, but if we think about the real adoption of cryptocurrencies–either through decentralized cryptocurrencies such as Bitcoin or tokenization, stablecoins, et cetera–it will go through smartphones.”

In light of this prediction, Ledger is making plans to be well positioned when the time arrives. “So, in five years, Ledger will most probably license much more of its technology to smartphone providers rather than selling hardware wallets as a device.”

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