An Introduction to the Ledger Vault
Introducing Ledger Vault
As crypto assets reach their way into the portfolios of traditional investors, blockchain companies are quickly realizing the need for more traditional ways to hold and transact their assets. Custodial services have been the hot topic of this industry as of recent and the leading hardware wallet company, Ledger, decided to integrate their own custodial services into their hardware devices. Six of the top digital asset traders, investors and platform providers were lucky enough to take part in an early access release of Ledger Vault. As a mutually beneficial partnership, Ledger plans to work with these entities to test and develop hardware and software security features. The goal is to minimize security risks like hacking and physical threats through the use of multi-factor authentication.
What is Ledger Vault?
Ledger Vault is a multi-authorization cryptocurrency wallet management solution enabling financial institutions to safekeep their funds. It utilizes Ledger Blue enterprise devices to secure private keys and manage the multi-sig processes.
Aimed at asset managers and custodians
Possibility of tailoring transaction authentication procedures for each account
Utilizes multi-sig, timelock and rate limiters
Uses Ledger Blue enterprise devices to secure private keys and manage the multi-sig processes.
Owners, Administrators, operators
How Does Vault Work?
Within each Vault account, there are 3 different types of users with different roles and permissions. The first is an owner. Each owner will have a key that forms a Master Key to the vault. Owners will assign administrators as well as administrative schemes for the account. These administrators can create operators within the account, each holding different levels of authority; timelocks or rate limiters are the usual parameters set. Operators have the ability to view, create, approve or abort transactions as long as they do so within the parameters set by the administrators. This system of checks and balances allows institutional money to feel safe while holding a large amount of assets on behalf of their clients. Owners of the assets will always have control over their own funds, but with Ledger Vault, others are able to interact on their behalf. Ledger even offers its own custodial service, holding keys for corporate clients who must abide by their respective regulatory bodies.
Why is Vault Important?
Hedge Funds and institutional money need something like Vault because investors currently lack the robust compliance frameworks and security tools to safeguard assets effectively. Using Vault, asset managers can tailor their transaction authorization procedure for each account. Investors can be sure that they have control over their private keys, with no fear of hacking or manipulation. Vault is an important step in the journey of cryptocurrencies. In the near future, many companies will begin to offer custodial services and hardware wallets will be built with multi-signature authentication. Ledger is offering both the product and service, continuing their reign as the leader in crypto asset security.
Skylar Cobb is a Certified Bitcoin Professional who works with Crypto Consulting Group to help grow the Crypto Market and educate people on innovative blockchain technologies. He believes that the Crypto space is revolutionary and the emerging technologies will be vital to the advancement of markets- and society as a whole. Skylar studied business at Indiana University Southeast before pursuing a career in Real Estate, learning client management and customer relations in the process.