Coinbase was criticized for the decision to place backups of private keys of users in the cloud
The American cryptocurrency exchange Coinbase announced in its blog on February 12 that from now on, holders of wallets on its platform will be able to back up their private keys using cloud services iCloud and Google Drive.
“To recover funds, you just need to remember the password you set,” the company wrote. – If you lose your device or exit the application, you can easily restore access to your funds using your personal cloud account (iCloud or Google Drive) and password “.
This feature is supposed to allow users not to worry about the possible loss of access to their funds due to unforeseen circumstances..
“The private keys, which are generated and stored on your mobile device, are the only method of gaining access to your funds on the blockchain. Owners of “user-controlled wallets” such as Coinbase Wallet sometimes lose their devices or are unable to recreate the 12-word recovery phrase and lose access to those funds forever, ”the company added..
Netizens, however, took Coinbase’s new initiative with little enthusiasm, given the many hacks associated with weak passwords and other oversight of account owners..
Kraken CEO Jesse Powell wrote: “I’m not a big fan of educating users about poor security practices. Cloud storage can be handy, but they are constantly being hacked, in particular by porting mobile phone numbers. There is a 99% chance that people who sinfully want to use this option will not have strong enough passwords to resist professional hackers. “.
“I can’t understand how you can be so wrong about your target audience,” wrote one Twitter user. “I’ve always dreamed of storing my private keys on servers in China,” added another.
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