A China-based blockchain startup believes that the decentralized system of blockchain should be out of sight of the human to keep it safe for the greater good.
InVault is a Shanghai-based blockchain startup founded by Kenneth Xu believes the only way users of cryptocurrencies can be certain about the security of their assets is by the removal of any human oversight, a model of safekeeping common among many cryptocurrency exchanges today.
According to the CEO, Xu “Today, the vast majority of cryptocurrency exchanges globally still involve their senior management in managing the transfer of digital tokens ordered by clients. Putting the private keys to your cryptocurrency assets in the hands of senior management is akin to putting all your money in their control.”
This was amid when the Chinese regulators launched a crackdown on individuals and firms raising funds by offering their own digital currencies by declaring Initial Coin Offering illegal and wants them to close effectively.
InVault plans to charge service fees based on assets which is under surveillance. It will offer a decentralised corporate cryptocurrency wallet service and will put its clients’ private keys in several physical vaults. Biometric recognition technology to be used to get access to these vaults which will allow only authorised personnel. The company further plans to expand its services in South Korea, Singapore and Japan next year. Coinbase in the U.S. and OKEx are the exchanges that offer cryptocurrency custody services.
Despite the ban on domestic exchanges in China, crypto trading remains active as the popularity of many offshore operators is playing an important role. Xu said most service providers are mainly retail-centric cryptocurrency traders. Also with the market capitalisation of all cryptocurrencies at US$205 billion, he anticipated the cryptocurrency custody business feeding to the corporate sector to remain productive.
The startup CEO extended his views and said, “In conventional stock trading, securities are all held at a central depository and not by exchanges. The same should apply in the digital token arena too.”
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