Coinbase Users Can Backup Decrypted Keys on Google Drive

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Coinbase made an official announcement on 12 Feb that the users can now take backup of their private keys on Google Drive or iCloud.


This step is taken by the wallet Coinbase will safeguard against lost keys. Coinbase will help users to keep their keys safe and secure.

Private keys are the only way to access funds stored on the Blockchain. So securing the private keys is the first priority.
Some users may lose their phones or private keys and their funds are gone for forever. 

Coinbase users can store the encrypted private keys on Google Drive or iCloud. Coinbase reports that the private keys are encrypted and neither the company nor the cloud services will access the user’s funds. 

The private keys are encrypted with the AES-256-GCM encryption algorithm and are only accessible with the Coinbase mobile App.
The encryption is done by the password that the users can choose.
Only the user knows the password and accesses the private keys.

This is an optional service user can use the old services to back up their wallets. Coinbase reports that soon they will add more cloud services along with Google Drive or iCloud.

Earlier this month, Candian Exchange QuadrigaCx reports that they have no access to the cold wallets. The CEO of QuadrigaCx has the only one that has the private keys and can access the cold wallets.

Recently a report shows that QuadrigaCx team accidentally sent $500k to the cold wallets that have no access. 

To solve that problem Coinbase started to back up the encrypted private keys on Google Drive or iCloud.

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