Ledger is known for its consumer-facing hardware portfolios, but a number of companies have also started using the Ledger Vault since last year, according to the company’s vice president of products, Jean-Michel Pylon. This product focuses on providing storage solutions to corporate clients. In fact, the Ledger team is currently trying to sell MicroStrategy about the product’s benefits.
MicroStrategy is a hit business intelligence company in August 2020 by converting a large portion of Treasury to Bitcoin (BTC). Recently, Square, which just raised $ 50 million in Bitcoin, developed an open source SubZero internal architecture to protect assets.
Both use HSMs or hardware security modules to manage digital assets, Pailhon said. HSMs have been used to protect mission-critical data for decades and are generally considered invulnerable. While SubZero can be a great framework, Pailhon believes it’s best for tech companies like Square that know how to deploy and manage HSM. He said Ledger wants to customize it for its clients and that they “don’t need to know how it works. They just need to use the solution.”
We have asked Payhon to enter into a company like MicroStrategy. He said one of the first steps would be to determine the number of people who would be involved in authorizing the transaction; Typical installation requires a 2 x 3 signature; The CEO, CFO, and Attorney General may all have the same signature. All private keys will be stored in HSM. In this case, parts of the private keys can be stored in multiple physical stores.
Whenever a company employee wants to initiate a transaction, he logs into Ledger Vault and enters the requested transaction. A notification will be sent to all three subscribers. For authentication, they must log in and connect their Ledger Blue hard wallet to their computer. Finally, they entered their unique PIN on Ledger Blue to sign the transaction. There is also an additional layer of protection, which means that one of the signers has decided to completely reverse the transaction, provided that the minimum number of signatures are not approved.
Pelhon explained that while Ledger provides the back end and takes care of the HSM infrastructure, the customer acts as their own repository. This can be a problem because some companies may be required by law to use a regulated trustee. He explained that this is not a big problem:
“If you need a regulated guardian, you can ask the regulated person to become involved in the transaction.”
Meanwhile, MicroStrategy did not mention Bitcoin managers, although they publicly acknowledged the risks involved:
“ Although we own the majority of our BTC assets with designated cryptocurrency managers, any successful security breach or cyberattack can result in a partial or complete loss of our BTC assets in a way that cannot be covered by insurance or compensation provisions in our custody. Agreement. With these fathers. “