Jack Dorsey is selling a futuristic-looking physical Bitcoin wallet called Bitkey. This wallet eliminates the need for a "secret recovery phrase" (Seed Phrase) and relies on a multi-signature (Multisig) system with three keys. Users can now buy Bitcoin through the Strike app and transfer it seamlessly to their Bitkey wallet.
Jack Dorsey sells physical Bitcoin wallets privately through his company Block Inc. People can obtain the futuristic-looking physical Bitcoin wallet, called Bitkey, without sharing their home address.
According to a post published by Bitkey on platform X (formerly Twitter), anyone within the United States can request the physical wallet and have it shipped to a pickup point, such as FedEx, Dollar General, Albertsons, or Kroger stores, and even 9000 Walmart store locations. Obtaining Bitkey only requires a name and email address, in case the user pays with Bitcoin and selects a pickup point.
1. Dorsey's Bitkey wallet works without a secret recovery phrase
Bitkey uses a different recovery model compared to other hardware wallets. Most physical cryptocurrency wallets rely on a secret recovery phrase (Seed Phrase), which consists of 12 to 24 random words.
Many people have lost access to their cryptocurrencies forever due to the loss of recovery phrases, or them being stolen, damaged, or accidentally discarded.
Bitkey states: "Recovery phrases are difficult to manage, easy to lose, and attractive targets even for low-tech scammers." The site adds: "It's a single point of failure and represents a fundamental weakness in prevailing self-custody models."
Moreover, most cryptocurrency wallets rely on single-signature (Singlesig). In other words, users have one signature to sign all transactions. This makes it easier for hackers who target wallets with single signatures and a secret recovery phrase.
Bitkey eliminates the need for a secret recovery phrase. It is a multi-signature (Multisig) wallet with three keys. Each key is stored on a separate device:
* The first key: on the smartphone.
* The second key: inside the physical wallet (the device).
* The third key: stored on the Bitkey server.
This design helps people recover their Bitcoin even if they lose their physical wallet or smartphone.
2. Bitkey wallet signs Bitcoin transactions with two keys
To sign a transaction, users need two out of the 3 keys, usually the keys stored on the smartphone and the physical wallet. To make a spending transaction, users must tap the physical wallet with the back of the phone, similar to how "Apple Pay" is used at points of sale.
Given that there are 3 keys and 2 devices in addition to a server in the Bitkey system design, losing access to the physical wallet or smartphone is not a major issue. If a user loses their smartphone, the wallet app can be recovered using the keys stored on the Bitkey device and the server.
The worst-case scenario is when a user loses their smartphone and Bitkey device at the same time. This can also be resolved through "recovery contacts," who are people the user adds in the app when setting up Bitkey for the first time.
Bitkey was designed and created by the team behind Square and Cash App. The wallet is available in 95 countries.
Last week, Bitkey partnered with Strike, a Bitcoin payment application. Bitkey users residing in the United States can now buy BTC using Strike and seamlessly transfer it to their physical wallet.
It is worth noting that shares of Block Inc. (ticker: XYZ) were in the red this month, losing 7.83% of their value in the past thirty days, and are currently trading at $61.57 (according to article data).
