Bitfi and the XDC Network (XinFin) have announced the imminent deployment of advanced security features for the XDC protocol and digital asset to extend the Protocol’s security to the user interface and private key management.
As part of this integration, support for XDC is being added to the Bitfi 2 hardware wallet, installation of Bitfi’s proprietary single factor authentication for XDC web application, and single-factor authentication for masternode security.
The XDC Protocol is the only permissioned, fully institutionally compliant blockchain protocol that can integrate with financial institutions’ legacy systems seamlessly bridging legacy systems with blockchain capabilities. XDC is ISO-20022 compliant with advanced smart contract capabilities and is fully interoperable with Ethereum.
XDC is supplying a critical solution to institutions that now face rapid fintech disruption and may not survive without adapting to this reality. Although there is an alarming need to deploy blockchain capabilities, institutions are also met with complex and daunting regulatory compliance requirements impeding progress. XDC greatly exceeds the capabilities of other institutional blockchains that provide payment settlement and was developed to meet regulatory requirements on day one, enabling accelerated deployment. XDC is currently in use by institutions and is expected to grow rapidly within the largest and most liquid market in the world.
The utilisation of the XDC Protocol and its features will be supported by Bitfi 2 proprietary technology to ensure the highest possible security for institutional users and masternode operators. A single XDC node requires 10MM staked XDC, currently valued at USD600,000 of capital to operate and this cost is expected to increase in the near future. As such, XDC node operators are a target for cyber criminals and are susceptible to physical attacks. This integration effectively eliminates these risks.
For institutional use, conventional cold storage wallet solutions are inadequate. Cold storage technologies protect assets from cyberattacks, but users must closely guard physical hardware. Access to cold storage devices allows private key extraction with forensic tools. Bitfi 2 technology addresses all attack vectors by using computational key derivation without the need to store private keys or any data in memory. The necessary private key is calculated at time of transaction and is then instantly wiped, overwritten, and hardware is formatted to its original state. This technology was developed by Bitfi and is the only such solution available.
The single-factor authentication technology allows ultra-secure access to servers and web applications without the need for passwords. When access is needed, Bitfi 2 receives a request, and the user enters their user-created salt and phrase which is used as input to calculate a private key. The private key validates the public key on a server and the user is given instant access. For institutional users, this solves the age-old problem of unauthorised access. Since access is cryptographically signed, there is no need to verify identity or perform follow up checks to see if login was performed by the authorised user or someone else