Creating a Bitcoin wallet as a physical medium sounded like a strange idea a few years ago, but companies like Ledger have shown this might be the thing digital currency needs to reach a larger mainstream audience. Even though Bitcoin does not exist in a physical form, they can be stored on a tangible medium. As long as that medium is properly secured, there is nothing to worry about, and Ledger Wallet seems to check all boxes in that regard.
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What Makes Ledger Wallet So Special
There are a few things to keep in mind when creating a physical storage medium for something that has no tangible aspect. First of all, consumers have to be able to understand what the device does and how it works, without requiring a PhD in engineering. Furthermore, the device has to be accessible, portable, and preferably cheap.
Ledger has been working hard to meet all of those demands and more, and so far, have done a great job. Keeping in mind how the company CEO stores 1,000 of his own Bitcoins in a Ledger Wallet is a clear indication of how firmly he believes in the product’s security. To put that into numbers anyone can understand, Ledger CEO Eric Larcheveque carries close to half a million USD on his person most of the time. Good luck trying to steal those funds from him though.
Even if someone were able to store Eric’s Ledger Wallet – which is nothing more than a USB key on the outside – his funds would still be safe from harm. Unlike fiat currency wallets, the Ledger Wallet requires a private key before Bitcoin funds can be transferred to another address. That key is known to the end user alone, and the balance associated with the Ledger Wallet can be recovered by importing that key into a new Bitcoin wallet if needed.
Some people might be wondering what were to happen with Bitcoin funds if a Ledger Wallet is connected to a computer infected with a virus or malware. Once again, there is nothing to worry about, as the Ledger Wallet executes code on the device itself, rather than relying on input and output to and from the host computer. In the end, all Bitcoin funds are safely stored on the device, without making it accessible to assailants.
The Future of Ledger And Bitcoin
But the Bitcoin company is not resting on its laurels, despite an overwhelming success with their Ledger Wallet product. A new version of the Bitcoin wallet, called Ledger Blue, will be going into mass production soon. The Ledger Blue features NFC, Bluetooth, a touchscreen, and comes with the same level of security and software under the hood as its predecessor.
When asked about the future of Bitcoin, Ledger CEO Eric Larcheveque stated how he feels the ecosystem will undergo a bullish trend, but in far less spectacular fashion than in the early years. We have seen a far more stable Bitcoin price throughout all of 2015, and despite best efforts to suppress further price growth, there is no major value drop in sight.
Images courtesy of Ledger, Shutterstock