Japanese technical gigantic Sony, which has applied for various blockchain-related patents, stated a more substantial step into the crypto world this week. The corporation’s science division Sony CSL (Computer Science Laboratories) reported on Tuesday that it had formed a contactless digital asset hardware wallet.
The storing product uses the firm’s IC (integrated circuit) card-based RFID (radio frequency identification) system. The Japanese conglomerate maintained that its wallet is more stable than online (hot) storage as the product holds mutual authentication & encrypted communication.
“In online wallets such as cryptocurrency exchange websites or services, the private key is managed by the online wallet operator, not the user, meaning that users can access to the wallet itself, but do not manage their private keys,” the CSL described in its statement.
“Therefore, when an online server managing a user’s private key receives unofficial access and the private key leaks, there is a risk that others will use the cryptocurrency held by the user.”
Sony’s wallet points not only crypto trading as it operates private keys in transactions, but the DLT (distributed ledger technology) market because the product also provides controlling functions over keys that are part of blockchain-based systems, according to Computer Science Laboratories.
Until now, has Sony used integrated circuit card technology in its FeliCa cards, where a chip and an antenna are installed in each product and thus, according to the FeliCa overview, allowing transactions in around 0.1 seconds?
Sony’s wallet launch comes in an atmosphere of expanding regulatory scrutiny on the crypto market on a global level, but especially in Asia after several major security holes. The Japanese FSA (Financial Services Agency) has toughened its rules on digital currency transactions by introducing a new structure, prompted by the $530 million Coincheck hacks in January. One of the new laws is a ban on the hot storage of pragmatic assets.
Earlier this week, Japanese financial co-operation company SBI Group declared a plan for the construction of a different wallet for its VCTRADE crypto exchange.