SOLUTION TO SECURING ONLINE FINANCIAL TRANSACTIONS:GOLDILOCK
Exchange has been of various forms in our today's world. Man has evolved over time from the barter system to exchange of financial instruments. To exchange these financial instruments, there are naturally-dedicated markets that assist. Its however not a hideous fact that recent exchanges have been on the cryptocurrencies market. Cryptocurrencies exchanges are facilitated via the Block-Chain platform due to the various advantages it offers.
While money is moving from one account to the other, in a market for financial instruments, there is a great need for a real-time online system. This is basically to supplement the investors' desires for minute-by-minute transactions. There is nevertheless a problem with a basic real-time online system.
Most online systems are easily prone to hacks and fraud issues. Even the decentralised blockchain platform is not left out of this demerit. This can be supported by the fact that in the last two years, about $1.2billion dollars have been stolen over the cryptocurrency network.
So many solutions have been put forward by various schools of thoughts. First, the cold storage method was proferred. Here, information and financial data are stored offline and kept in physical services. The main issue with this method is that physical devices like paper and USB are prone to theft and fire incidents. Asides, some individuals might decide to secure the data and information in banks in secret and strong vaults. However, investors naturally need a real-time financial networks system and storing with the banks hinders their needs.
The traditional Hot storage method was equally proferred. Here, data is being stored over the internet and there is no offline storage as individuals need real-time access to their wallets and accounts to make transactions as quickly as possible.
What then solves all these problems?
Goldilock brings forth a perceived panacea to the problem of securing financial transactions. Goldilock is built on three standing principles. The first being that individuals are interested in accessing their personal data quickly but not everytime. This simply means that individuals may need their information shortly then go offline as noone really transacts on the market 24/7.
The second is that Private data should be maintained far away from every physical contact possible as well as human error. The third is that "Private keys and personal data must be quickly accessible when needed."
There are thus, three method by which Goldilock achieves these feats.
"1. Wallet is stored offline through a physical airgap mechanism, and is not accessible from the internet.
- Using a non-IP mechanism, the user activates their wallet making it accessible over the internet.
- User can securely access their wallet over an encrypted connection using a dedicated URL and access credentials."
Goldilock has solutions to adapt to their specific consumers needs. For private individuals, Goldilock entrusts private key custody so only the consumers have access to their data. Even Goldilock does not know the contents of the customer's data.
For organisations, Goldilock understands that there are previously existing systems of data storage in place. Therefore, it does not preach for a complete removal of the existing systems, rather, it proffers solutions for upgrades to the already existing storage systems. Goldilock allows the hot wallet operators to use their airgap systems to make sure that there is no theft of funds or data. Likewise, for cold wallet operators, Goldilock recommends a gradual integration into the Goldilock system for a more remote and secure transaction.
In summary, protection of data is very important in today's ever-evolving world. One can only wonder how successful and how further the cryptocurrency markets would grow as a result of this innovation by Goldilock to enhance security of data used for financial transactions.
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