Trezor is a Bitcoin hardware wallet, which has just become available. It is difficult for novice users to relate to Bitcoin software, but a hardware wallet which can be compared to your DigiPass for banking transactions seems to go over quite well.
Trezor has no battery, wifi, bluetooth or radio, and only consist of two buttons. Corruption of this hardware Bitcoin wallet is very limited, comparable to cold storage. Not to mention it is incredibly small, so you can easily take it with you wherever you go.
Interfacing is done through a USB port, which is used for copying and pasting information. No connection to the internet is made at any point in time. By striking a good balance between good security and day-to-day usability, Trezor could be an incredibly powerful tool for Bitcoin adoption.
Users can create multiple accounts on one Trezor device. A pin code is required in order to execute a transaction. However, the layout of the pin code keypad is shown on the device itself, which is NOT the same as on your computer, hence removing any malicious keylogging activity.
If someone managed to change the transaction address through malware, you can still verify the receiving address on your Trezor screen. Transactions need to be confirmed twice before executed, and are visible on the blockchain immediately.
Other people can never know there are multiple wallets on your Trezor, so threatening people is not a plausible idea. The wallet software itself is open source. If the device is stolen, and the device is (not) protected by a password, the time between pin code guesses increases exponentially.
If you forget the wallet password itself, your wallet is completely gone. As the wallet password is not saved on any external servers, there is simply no way of recovering it. Losing a pin code is not a problem, as the code can be reset.
Trezor costs 119 USD, but we can only hope prices will go down. It has also been listed on Bitcoin.org as one of the many possible wallet solutions. It can only be bought with Bitcoin, which could be a flaw in their business model, especially when it comes to novice users.
Website : http://www.bitcointrezor.com/