Coinbase Wallet now allows backup of private keys on iCloud, Google Drive

12 Feb, 2019
by David Borman
Security
Coinbase Wallet now allows backup of private keys on iCloud, Google Drive

Coinbase announced today that its Coinbase Wallet platform will now allow users to backup their private keys on their personal iCloud or Google Drive accounts, with the hope of making it easier for recovery should they lose access to their device or other issue.

It is not uncommon for users to lose access to their crypto wallets by accidentally losing their backup seed phrase, and this prompted Coinbase to try to come up with another option for consumers. Their solution is to allow users to store an encrypted backup of their private keys on their own personal cloud storage account. Currently iCloud and Google Drive are supported.

Read more: Coinbase Wallet now supports BTC, store your BTC on your Crypto Wallet app

Users make a unique password to unlock the encrypted keys, and so only need to remember one password, not a whole recovery seed. Though this may help some users, many on twitter pointed out that this at best goes against decentralization, and at worst could be a huge security risk.

The main concern is that should either cloud service get hacked, thousands of users private keys could be compromised. The counter-argument is that these keys are themselves heavily encrypted so as long as users use solid passwords they should be safe even if accessed by a third party. Coinbase and some on twitter defended this choice along these lines.

Ultimately each user can ask themselves if the benefit of another backup is worth the inherent risks and trust issues. The most hardcore will likely always prefer to hold their own personal backups of any relevant keys and recovery phrases, though others might prefer the convenience of having a cloud backup and trust their password is sufficiently uncrackable. Coinbase will leave it to each user to decide for themselves.

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Poll

Would you want your recovery seed encrypted and backed up on the cloud?

(2 votes)

Add a comment

On Google drive? Sounds not secure but nevermind. I have one question if users will have issues during using CB wallet will customer servuse help them? Or it will be like last times when users were looking for the solving in social media in other users? It was terrible and now i dont believe Coinbase!
12 Feb, 2019 - 21:55
Yas, google drive sounds like a safe place. Real retarded news from coinbase. Nothing's safu there.
12 Feb, 2019 - 22:23
doesn't look cool , more authentication with coinbase now, and it seems collect your personal information
13 Feb, 2019 - 05:52
it seems like coinbase wants to make security worse and let hackers to get personal info of clients
13 Feb, 2019 - 08:12
Did Coinbase go bananas?
13 Feb, 2019 - 09:00
why is Coinbase doing this? do they understand consequences?
13 Feb, 2019 - 12:24
Google will go down Coinbase.... to the bottom.
13 Feb, 2019 - 15:21
Backup of private keys on the cloud services?
Has CB staff become mad or security isn't necessary???
13 Feb, 2019 - 19:39
iCloud and google drive? these are private keys but not public! What CB does? In my opinion it's a disaster
13 Feb, 2019 - 21:54
Coinbase forgot what does safety mean! Cloud services for storing private keys is nonsense
14 Feb, 2019 - 10:07
i agree with those who say that if coinbase would really move personal data to the cloud servers then this info would be much easier to access with the help of hacks
14 Feb, 2019 - 10:27
Why to trust Google?? Is so Coinbase dull?
14 Feb, 2019 - 19:57
iCloud, Google Drive what is this? Where is a security? CB are you fucking kidding me? My pocket has more safety then your wallet
17 Feb, 2019 - 09:50
I think this is a bad idea of Coinbase. A year ago, there was written on the Internet that access to documents in Google Drive is not so secure and it can be hacked ...
17 Feb, 2019 - 21:10
perhaps coinbase invented it so that their shills would break into the coinbase user accounts and steal money even easier.
17 Feb, 2019 - 23:00
Does Coinbase think about security sometimes when it makes such decisions?
18 Feb, 2019 - 21:01
and now coinbase made a new reason for the hackers attack, well done )
18 Feb, 2019 - 23:14
Cloud storage of private keys? Coinbase is kidding me at all?? Where is security or it's not needed in 2019?
19 Feb, 2019 - 02:38
Cloud storage? Does Coinbase care about private key protection at all?
19 Feb, 2019 - 20:41
Coinbase is crazy!!! What haos they make!!!!
19 Feb, 2019 - 21:26
OMG Why Coinbase use cloud storage? Are CB staff out of their mind? Is security not important when hackers break the services and exchanges almost every day?
20 Feb, 2019 - 07:58
Another proof that Coinbase does not care about the safety of its users. Keeping private keys on the cloud services is very dangerous move!
20 Feb, 2019 - 09:23
storing such an important infomation in such unsecured way can definitely lead to leak of personal data and maybe even funds hacks. coinbase should think thousand times before doing such shifts
20 Feb, 2019 - 20:06

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