the future of bitcoin security will o'brien bitgo presentation at tnabc #btcmiami

The Future of Bitcoin Security Will O’Brien, CEO BitGo TNABC Miami January 18, 2015 www.bitgo.com -‐ @BitGo

Copyright © 2014 BitGo, Inc 1

Who Am I?

•  Will O’Brien •  CEO & Co-‐Founder of BitGo •  FinTech, trading plaQorms and capital markets •  Startups and mid-‐size companies in consumer, payments, video games, and media

•  Computer Science, Harvard; MBA, MIT Sloan •  Obsessed with Bitcoin since 2012 •  [email protected]; @willobrien; @BitGo


About BitGo: Securing the World’s Bitcoin

Leading Bitcoin security pla3orm and pioneer in mul5-‐sig technology Launched the world’s first mul[-‐sig wallet in August 2013

$14m in total funding from veteran investors and finance luminaries

Copyright © 2014 BitGo, Inc

Our products:

•  BitGo Enterprise

•  PlaQorm API/SDK

3

Why Customers Choose BitGo

Family offices

Hedge funds

Bitcoin miners

Marketplaces

Exchanges

•  Secure storage & transac[ons

•  Corporate treasury policies

•  Mul[-‐user wallets •  Financial repor[ng &

audit capabili[es •  PlaQorm API


Overcoming Early Concerns About Security


“$1.2M hack shows why you should never store bitcoin on the internet.”

“From treasure to trash: Man tosses out bitcoin wallet on hard drive worth $9 million.”

“To achieve wider adop[on, bitcoin needs to address significant issues related to security…Mt. Gox was like a bank storing valuables in the lobby entrance.”

“Some see the security issues as teething pains, but it is possible that the security of the core transac[ons technology will be outweighed by the insecurity around the core...almost 10% of all Bitcoins have been stolen or seized as part of a criminal venture in the last year.”

Does This Even Qualify as “Digital” Currency?


The Bloomberg reporter opened up his paper wallet to show the private key, and, not too surprisingly, the funds were quickly stolen. “

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We Need a Secure Bitcoin Ecosystem


Financial Services Payment

Processing

Wallets & Vaults

Trading & Exchanges

Mining

Consumer Apps

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“This is the year of the mul[-‐signature wallet.” -‐-‐ Gavin Andresen, chief scien[st of the Bitcoin Founda[on, May 2014

9


19frDKN7XwWL2wwhz35as7PtRFcL4vCNYG!

335Zc8furTKgD32bWewYwGYGai7sMrtKse!Multi-sig! J!

Not multi-sig L!

2-‐of-‐3 HD Mul[-‐Sig Wallet: Key Genera[on and Distribu[on


BitGo Key •  Generated and stored by

BitGo •  Stored in BitGo key server •  Used to co-‐sign all

blockchain transac[ons

Customer Key •  Generated and stored by

customer using BitGo tools •  Archived with encrypted

keycard •  Used to ini[ate all

blockchain transac[ons

Backup Key •  Generated offline using

BitGo secure tools •  Archived cold

Analogy: Origins of SSL the Standard


Mul[-‐Sig as an Emerging Standard

•  Based on P2SH (BIP 16) •  Build it internally or use a security plaQorm provider

Key Tenets: •  Funds held on blockchain in mul[-‐sig, not in cold pools •  Maintain independent audi[ng of holdings •  Enable customer segregated accounts (where appropriate) •  Set corporate treasury policies and protec[ons •  Leverage security of mul[-‐ins[tu[onal key distribu[on

–  Use a 3rd party co-‐signer on transac[ons –  Store backup key with a custodian



The Emergence of Mul[-‐Sig Exchanges

Bitcoin Wallets Adopt Mul[-‐Sig

Trac[on in Mul[-‐Sig in 2014


Source: p2sh.info

The Future of Bitcoin Security


Read more…. •  hrps://medium.com/@willobrien/its-‐[me-‐to-‐end-‐the-‐cold-‐storage-‐ice-‐age-‐and-‐

adopt-‐mul[-‐sig-‐8589733c9fd6 •  hrp://www.coindesk.com/2014-‐became-‐year-‐mul[sig/

Thank you.


Contact us: [email protected] [email protected] www.bitgo.com

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the future of bitcoin security will o'brien bitgo presentation at tnabc #btcmiami

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