U.S-based digital currency wallet, Coinbase will soon allow its users to back up their encrypted keys on Google Drive or iCloud, according to an official announcement on February 12.
This latest feature will act as a shield for users and assist them in avoiding loss of funds, in cases like misplacing private keys or losing their device.
Coinbase posted on Twitter –
?☁️ Introducing Cloud Backup for your private keys on Coinbase Wallet!
Backup to your personal iCloud or Google Drive, and explore the open financial system with peace of mind. https://t.co/6uaHT8AZky
— Coinbase Wallet (@CoinbaseWallet) February 12, 2019
Coinbase stated in the announcement:
“The private keys generated and stored on your mobile device are the only way to access your funds on the blockchain. Owners of ‘user-controlled wallets’ like Coinbase Wallet sometimes lose their devices or fail to back up their 12-word recovery phrase in a safe place, thus losing their funds forever.”
Coinbase Wallet with cloud backup will provide crypto users the ability to store an encrypted copy of recovery phrase on users’ private cloud account. The users will only have to remember a password to reclaim their funds.
If the crypto users lose their device or uninstall the app, they can easily recover access to their funds with the combination of users’ private cloud account (Google Drive or iCloud) and their password.
The backup is encrypted with AES-256-GCM encryption and accessible only by the Coinbase Wallet mobile app. The backup can be decrypted only by using users password.
The crypto wallet firm confirmed that it would not have access to users password or funds at any time, protecting users privacy and control. The cloud backup provider will also not have access to users funds since the password that decrypts the users know their encrypted recovery phrase.
The cloud backup feature currently supports Google Drive on Android devices and iCloud on iOS devices.
The crypto firm affirmed that the cloud backup is optional for crypto users and they have to opt-in to activate it. The users will still have the option to view their recovery phrase and back it up manually.
The firm said, for additional security, users need to activate Two-Factor Authentication on their personal Google or iCloud accounts. The double layer security will only make accounts difficult for hackers to attack.