Why Steem offers one of the most secure wallets in Crypto

in security •  9 days ago

There's been a lot of discussions lately about security in wallets and I wanted to chime in some facts about the Steem account wallets and how they differentiate from others.

Thefts have been growing lately, recently NiceHash made an announcement stating their hot wallet had been emptied and miners lost an equivalent of $60 million in Bitcoin. With adoption and more users these thefts and hacks will just keep on increasing, its going to be a wild west where only the truly safe options will remain.

Account Recovery

As you are aware by now in crypto, only you hold the keys to your wallet. If someone else has a copy of them or you are storing them on another site such as exchanges then they are never truly yours as they can be stolen or hacked at any time. This is why many only "hodl" their coins and don't trade with them on a daily basis - this is also a big reason for the ridiculous volatility we have been seeing in prices as only a minority trade actively with their coins. Many use so called cold wallets to keep their private keys safe, same thing goes for your Steem account - you should have your private keys backed up offline and in different places to keep your account as safe as possible.

Steem offers an account recovery like no other crypto does. If you have created your account through the normal signup process and the @steem account has created it, this means you are eligible for an account recovery in case anyone were to get a hold of your private key. The recovery works only if you still have your initial private key though, which means that losing the key completely will result in the control of the account and its funds being lost forever. If someone were to take your private key and use it to change it into another so you lose control over your account - the recovery option gives you a whole month time to reclaim it. No matter how often the private key keeps changing, within one month you can recover it by proving you are the real owner of the account with the original phone number and email you used when signing up. This will give the account access back to the original private key which you then can change to another one combined with all other keys within the account.

Safety in savings and vesting

Other than the account recovery which is revolutionary on its own we have some added safety precautions. One of them is your Steempower investment which takes up to a full week to power down 1/13th of it. This means that if a hacker was to gain access to your keys he will have to wait up to a week to be able to steal your Steem that are vested on your account - giving you enough time to recover the private key with the option above.

If you like to hold a lot of coins liquid such as Steem Dollars or Steem, we also have a Savings account that takes up to 3 days to move them from savings into your account to make them transferable. This also gives you a lot of time in the case of a hack to regain control over your account.

Funds you have just laying there in liquid form have a high chance to get stolen in the case of a hack, though. That's why advice most users to not leave big sums just there on your account. Don't give the hackers a chance to even attempt to hack your wallet.

This is what makes the Steem wallet so unique compared to others. With other wallets such as Bitcoin or Ethereum, if a hacker were to gain access of your private keys, you'd have to say goodbye to all of your funds and never be able to get them back.

Remember that Steem is still a fairly new project and updating constantly, we will probably see more upgrades to safety precautions over time. There's also been some talk that many crypto investors don't feel safe with using a website to handle their wallets for risk of getting hacked (which could be a reason why there are so much Steem on exchanges),for that @jesta has created a desktop wallet called Vessel which I urge anyone to check out. Not only being safe it also offers a lot of different functions to make your Steem activities easier, such as delegations.

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What are your thoughts on the security of the Steem Wallet compared to other ones?



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I change keys almost every week. Makes me feel safer.

One point that is extremely important to add to this story.

All tokens created using the SMT protocol on the steem blockchain comes with this security. What an added benefit for someone who knows content creation but is not a crypto security expert. Instead of being dependent upon some outside individual making sure the tokens are safe, using SMT will enable one to create a token with the strong security you mention.

What an ingenious move....eliminate or at least minimize one of the biggest fears people have with cryptocurrencies....

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Yeh you're right about that, STEEM is probably the best blockchain to build the SMTs on and security is a large part of the reason why. At least until EOS is launched

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Just remembered what McAffee says: Everything you have on a cell phone can and will be compromized

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Is that REALLY true though, not sure I would believe everyting he says...

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Technically speaking, McAffee is correct unless you are paranoid about security and never even connect it to the internet or something. There is always a way.

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That's pretty epic. Thanks for the info. Don't forget to add that SMT are specialized. It's a very important keyword. Specialization is the reason Dash and PIVX are going to overtake BTC. You always must have a vision and a destination for your journey.

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Do you think the steemit platform will be anywhere near as influential as Facebook? It seems hard to imagine that.

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It depends upon what they do with steemit. Right now, this site is a cross between reddit and blogger. It is nowhere near the functionality of Facebook. The communities feature, depending upon what that looks like, might move it closer.

The steem blockchain can be as influential. It has the ability to take over the social media world. That is how big some of the apps, if they reach their potential and SMTs can be.

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I think steemit and crypto have a long way to go in being as available to the general population as things like Facebook- but I believe that it can happen. Steemit is very different from Facebook though- it's way more technical and more of a blogging site than Facebook is. If steemit were to become easier for the general layperson to use, I think that it could certainly become that popular.

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it is possible. considering the rate at which it is becoming popular. it is possible.

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lots of development is needed.. I invited a friend to join.. after trying one full day just to figure out how to change the profile picture she got so pissed at the process that she never logged back.. but once the system is developed and people can do things which they do in Facebook in a more efficient and faster way... and Facebook gained to attract a lot of user from the poor class by offering free facebook.. many people still can't afford to buy a laptop or a computer but with cheap androids phones.. many can easily afford to have a smart phone and so can also use Facebook without the need to buy data service... which is how Facebook managed to attract the vast population.. question is can Steemit offer the free data service like internet.org

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Please I need you to give me a vote in any of my posts I would appreciate it very much

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What an ingenious move ... to eliminate or at least minimize one of the biggest fears that people have of cryptocurrencies ...
let's hope this is positive

This is why I love Steem I heard a lot about bitcoin yesterday and I was shocked

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Prices are increasing day by day, surprising, so what?

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So, I'll have crypto house very soon ...

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haha. i strongly feel that

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better ways

I agree a hundred percent and that is what makes Steem Power a very good place to park your money. A lot of people are making huge amounts of money on the crypto market right now, but when things get shaky I think a lot will come back to Steemit and put atleast some of the funds here. They say "you should be your own Bank" Steemit is a good option

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Doesn't the inflation make Steem less valuable in the long term?

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The inflation does dilute the the value, however, compared to the increase in demand this inflation doesn't have such a big impact I think

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Not if it's powered up, you don't lose to inflation.

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"Self-Banking"...there's no one you can trust more than yourself

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That is very true ! And this way definitely beats putting paper money in your mattress hehe

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ello there dear steemit group could you upvotes me and follow me @alhmali

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Just need to figure out how to work everything first.. and what it all means!

If someone else has a copy of them or you are storing them on another site such as exchanges then they are never truly yours as they can be stolen or hacked at any time. This is why many only "hodl" their coins and don't trade with them on a daily basis - this is also a big reason for the ridiculous volatility we have been seeing in prices as only a minority trade actively with their coins.

Actually the vast majority of Bitcoin and other crypto users store their coins on exchanges (even if they're not actively trading), and this is a massive problem.

This is a conclusion of basic math (historic number of transactions vs. exchange accounts as well as amounts held in known exchange addresses).

I would also note that account recovery applies even if you weren't registered via @steem. For example I onboard people using steeminvite.com. If you look at the accounts I created such as https://steemd.com/@one-person, they have 'demotruk' registered as recovery account. Thus if @one-person ever got hacked, they could contact me, I could investigate it and help them recover if I am confident they are the real deal.

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That's really surprising that they do that... its like they want another gox to happen.

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It's the perfect weak point for the "powers that be "to sieze in the night. I feel like that's one of the few options they have left to stop this thing

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And they are most certainly planning that..

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It's like 90%+ are total newbies who have never been exposed to much of Bitcoin's history or philosophy.

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Can the average person understand the concept of steemit? I don't think so. My wife uses Facebook and she has no idea how steemit works. She's also not interested in knowing how. Aren't most of the people like her? With Facebook, there isn't much to figure out.

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Do you have to understand it to use it though? I think we make a mistake of trying to explain everything up front. It's a blogging site that let's you get paid, and your votes are money. Enough said, it works, we don't have to convince everyone of how it works in a more technical or detailed way. You'll come to understand it better as you use it anyway.

Does your wife actually know how Facebook works?

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We use lots of things without knowing how they work. I flew to Lisbon on a plane and don't know how they work.

Posting and commenting is how Steemit works, you just get rewarded for posting content instead of Facebook. If you can text a message you can blog.

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Dont need any markup language on Facebook.

Steemit is very very simple to use, but definitely way too complex for average FB user.

Need to go even lower down the ease of use ladder to pull in FB users.

I've never met anyone under age 65 that cant figure out FB, and 50% of 65+ yr olds can also use FB.

No way steemit is that easy

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You don't have to use mark up on Steem.

The only complicated part of Steem that is necessary is the long passwords, which I admit is a hurdle.

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That's how i am getting into it now... just ground and pound. Figure it out as you go and always get better.

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Good point. She often asks how Facebook has made so much money since it's "free". So, for starters, I told her look how much people pay for Facebook Ads. That money goes to Facebook. Then, she kind of understood. So, you're right. As long as blogging makes you money, then that's probably all most people would care to know.

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NiceHash just happened...

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Was just going to post this, 60 million $ got stolen.

Even if you're hacked and you have all your steem as steem power, they will not be able to benefit from it, and by that you have time to recover your account.

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Do you fully understand the steemit whitepaper? I understand most of the bluepaper, but I'm having trouble understanding the whitepaper. I just read a little bit of it today so after rereading it, I think I'll catch on. Where do you stand on all this?

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You will learn more and more about Steemit, the steem blockchain etc just by being online at steemit, communicating with users etc. Just clicking on your "wallet" makes you understand it a lot more.

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Informative

Can't wait for a company to create a hardware key holder to maintain all our crypto services keys. Just the same way there are hardware wallets.

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This might be a noob question, but what's the difference between a hardware key holder and a hardware wallet?

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All this is new for me as well. I've got the same question now...

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A hardware wallet is a wallet inside a pen drive, you keep your private keys yourself inside the pen drive which also adds some protection as having to push a button in order to confirrm your transactions so hackers can not get your coins. A hardware key holder would be a pen drive to store all private keys from your services so you do not need to keep them on paper which is the safest way to keep them away from hackers. A hardware key holder does not exist, at least I am not aware of, on the other side, there are several hardware wallets in the market; keepkey, trezor and ledger nano.

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So a hardware key holder is basically a harddrive which has never been connected to the internet and which can store text strings? I guess I could use my Casio calculator for that purpose.

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Yes, but a little bit more sofisticated and smaller so you could carry it with you and services would "take" the password from the pendrive directly instead of you typing them on the computer and having a chance to be phished by the hackers

I think Steemit can almost be a bit of a distraction away from just how solid fast and reliable STEEM is as a currency. I would like to see more use cases put forward and more opportunities to spend STEEM in the future

Generally, I like steem inbuilt wallets. They are quite safe, except one's account gets compromised as you've clearly stated, @acidyo. I would really like to use witness @jesta's vessel 0.0.9. However, I have a major challenge. The private keys usually have about 52 characters each. The wallet doesn't allow me to enter more than 33 characters.

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There's no limitation on that field, that's just as much as your browser window will show in that field. If you keep typing (or just paste it in from a different file), it should accept the entire 52 character string.

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Its That Problem Man..
U should Try with Your Real steemit key..
best of luck

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that's comes with it's risk though.
Ideally u want to use your 'master' key as less as possible.

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ello there dear steemit group could you upvotes me and follow me @alhmali

Greetings friend. So far it seems to me that the security offered by the Steemit platform is quite safe, just like the internal wallets. I think they are super safe. every time I'm going to make a transaction, asken the password and sometimes I forget it. I can not remember names and phone numbers. Imagine remember 52 leters and numbers. LOL

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ello there dear steemit group could you upvotes me and follow me @alhmali

But once steem got hacked in 2015

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I was still new at the time, but from what I remember steemit.com (the website) got hacked - and some users keys were exposed. The blockchain itself (steem) didn't get hacked.

Unsecure blockchains or difficult blockchains will definitely fail. More security=more trust=better investment. I don't know enough about steemit security.

I've talked to others about steem, even those big into crypto, and even after explaining how the entire system works they just are hesitant. It's a leap of faith for some I think, to put virtual money into a virtual platform, even if you can multiply the value of your holdings faster on steemit than any other investment. It's frighteningly ingenious to think how Dan the man masterminded such a simple platform that has more network traffic already than all other crypto combined.

full steem ahead.

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Ya, my colleagues are really into it recently. Followed

Very interesting read. And you're right, putting it into savings is one of the most secure ways there are!

Is simple and secure, is there any hardware wallet that supports steem?
Thanks for sharing

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ello there dear steemit group could you upvotes me and follow me @alhmali

That is why I got my husband to agree to invest in steem for me but the price went up, lol. I am also converting some ETH to power up but only after the present congestion

I hope Steem never gets hacked.. but even if it gets hacked only liquid Steem and SBD can be stolen.. The 13 weeks Steem Power down policy can keep most of the Steem Safe.. and in case if my account gets hacked then what would be the process to recover the account? This recover process is something I'm curious to know

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ello there dear steemit group could you upvotes me and follow me @alhmali

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meep

Great info, steem really offers a very secure wallet and also insanely fast transactions!

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Yes I think so too :)

Excellent information, i agree with your points the steem wallet is so unique and innovative and honestly i never saw such crypto wallet before which can be recoverable even if someone hacks it, well in my opinion these thing gives more strength to steem blockchain and we are seeing a result of it in shape of pumps at exchanges. thanks for sharing this nice information with us, Stay awesome.

I for one take this kind of security for granted and haven't thought about it too much. It's good to know we are in such a unique position because the security aspect will certainly become a bigger criteria for investors. Also if SMT's will be as secure it will be a great selling point.

Go Steemit! I have telling all my friends to get on this platform, big love for this community and how secure it is.👏🏻

@acidyo I agree one of safest places to be is STEEM POWER.....

This is absolutely the truest case. With the ever growing volatility in the market, this is one place where you feel secure for keeping all the steems that you earn.

i have fun reading this post plz upvote

All tokens created the use of the SMT protocol on the steem blockchain comes with this safety. What an added benefit for someone who knows content material advent however isn't always a crypto safety professional. instead of being established upon a few out of doors man or woman making sure the tokens are secure, the use of SMT will allow one to create a token with the robust protection you point out.

steem wallet is really good , thanks for your information .

Thank you for sharing this @acidyo ..I am new here in Steemit these are very educational info. Resteemed!

That's the beauty of Steemit, security and you don't get charged if you want to transfer your Steem to Bittrex or any other exchange.

I agree. The vesting and saving options are preventive measures already taken even if keys are lost or someone has access to your account.

It is also unique in many ways. My wallet is simply @ilyastarar and nothing else. It has private keys which are secure but if someone has to transfer Steem, SBD or SP to me, ilyastarar is all he or she needs to type.

What a simple way to transfer crypto!

Very good info... and easy to read. Thank you!

Even though any wallet is open for all to see and the transactions are free for whom ever wants to see them it is still safe from most harms. Yes I agree steemit is set where the wallet even though is hot wallet is still a very safe way to store crypto.

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I am new, please forgive my ignorance. Is there a way to store your other coins along with your steem in your steem wallet? For security purposes.

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Unfortunately not. There are some specialty features within steemit where there are wallets created when you have a coin that can work with steemit. Look up Pocket coins and SMARTCASH. I know they work with steemit. There is also smart tokens that is about to come soon. They are custom coins within steemit named SMT if I am not mistaken.

I just wrote a post of 5 Reasons why Steemit will be bigger than Bitcoin in a few years and i had not known of this advantage our wallets provide.

Steem offers an account recovery like no other crypto does

This will be another reason we shall beat all other cryptos.
Also having Steem in SteemPower is indeed reveolutionary and also the Savings account is just wonderful....Steemit is the future of crypto.

If you guys are free you can check out my post of my my 5 Reasons will be the top most cryto currency in the world soon post.
I cannot post it here,you can check it on my blog.

Thanks @acidyo for the great tips and adcice.

Perfectly written. Now I understand why I had to come up with 13 weeks for withdrawals SP. Also, thanks for sharing your information about the new development from @jesta
After your article, I feel much more safe.

Start spending and earning cryptocurrency as a consumer and business owner with:

https://steemit.com/ethereum/@wa1ker123/are-you-a-business-owner-start-accepting-bitcoin-and-ethereum

Steem Coming Soon! New Payment Gateway

I really like the safe. If there is a lot of Steем, I'll put them in the safe, from there you can get them out in 3 days, but the attacker will not have time to steal money in case of a break-in.

Can Steemit join this group some day?

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That is actually a crazy thought looking at something like that. That would be somewhere to be on a conceptual basis like that.

I will say my thoughts with this gif ITO the moon!.gif made today :)

Just thinking based on the current progress,how long would it take for steam to over take Facebook and other social networks.

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don't expect Facebook and Snapchat to vanish just yet.
Steem can co-exist besides them.

What I can see is that troubling networks (twitter anyone..), adapt a SMT, once this get's more mainstream.

awesome article! Thanks for writing it and did I mention before...I love steem and it’s platform!! Going places for sure!!

esteemit has a more secure portfolio for its members in the interest of their money and trust in its system and for new members

Thanks for the info!

So true.

Security, scalability and speed, Steem has it all!

Thats the benefit of steem, secure and durable. We may as well bask in this and nod our heads like Steeminaire.

Good content and quite informative to say the least. Thanks a lot.

This is good to know. I wonder why other wallets aren't designed in a similar fashion? Seems like they would adopt methods that seem to be proven and better than what they offer. Glad steem is secure.

All the security features that you are saying here is seems to be very safe and I had already learn about this article. Fruits good for all of them who wants to invest their money to steam.

Its crucial to the platform that security is tight as people really do spend a lot of time on here posting and curating. Its a real time investment so any gains have to be really well protected and it has to be basically impossible to completely lose access in the same way as can happen with online wallets.

yes. All tokens created using the SMT protocol on the steem blockchain comes with this security. What an added benefit for someone who knows content creation but is not a crypto security expert. Instead of being dependent upon some outside individual making sure the tokens are safe, using SMT will enable one to create a token with the strong security you mention.

Wait so on Steem is the private key a single word or is a a digital strand of letters and numbers? Now you got me a little scared not sure where I have that.

on the steem blockchain comes with this security. What an brought advantage for someone who is aware of content advent but is not a crypto safety expert. in preference to being structured upon some outdoor man or woman ensuring the tokens are safe, the use of SMT will permit one to create a token with the sturdy security you point out.

downloading for this. Thank you @acidyo

Actually that's why I loved the sitmate and there is a lot of sophistication within Estimate that makes us all love him
thank you

steem wallet security system awsome..by
crypto

I think Iota is the onw which is more secured compared to other ones as it cannot be cracked by having Quantum Computers ( If we see a Quantum Computer in Future )

Only the email used for signup and the old password are needed for recovery, if doing so through steemit.com.

Long live Steem! It is so exciting to think about the future of this website.

I never thought about steem power investment as a form of security of my wallet. After reading your post, i mentioned this aspect in my post here:

https://steemit.com/steemit/@miti/you-want-to-help-steemit-grow-up-strong-and-sure-four-step-for-success

Very good post @acidyo, as usual.

Yep, Steem got the most secure cryptocurrency wallet out there. Followed by Bitshares.

If you are into cryptocurrency for trading purposes and do not have a digital currency account then you are missing the whole point of the game.

Perfect Money is the most secure, the most stable, and the most liquid form of e-currency in the world. Period!

Very informative thank you for sharing upvoted & resteem @mannyfig1956

The security aspects are several steps ahead of other cryptocurrencies. Not bulletproof (nothing is), but it make for a great deterrent as criminals tend to seek the path-of-least-resistance.

If the @steem account created all of our accounts would that make it a single point of failure for all of Steem?

I think the steemit platform will be anywhere near as influential as Facebook

A knew someone who had his account hacked few months ago and was able to recover it too...

Really great info, now I know how it works. Kudos!!! Will be sure to keep my original key tucked away safe in multiple locations. Good call.

Thank you for the information

Thanks for the post. I was looking for steem wallet and I think I’ll end up transferring there.

With BTC going up this added security will become more and more importaint .

in the past few days i have been learning a lot great things about steem and its been fascinating.

I love all the security features we have on Steemit! Most of my funds are in Steem Power, which means that it will take the hackers a full week to gain access to even 1/13th of the funds. The savings feature is also very nice when you need to have some liquid assets!

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Well, you have money from your pocket in your fund,
Actually the system is very good,
Good luck for you,

Steem is a long-term and a safe investment.With all the money being nowadays kept electronically it’s very important that the platform is as secure as this one👌

I like the security, I wouldn't mind an offline cold storage option.....

Congratulations @acidyo!
Your post was mentioned in the hit parade in the following categories:

  • Comments - Ranked 5 with 109 comments
  • Pending payout - Ranked 7 with $ 221,18

This makes me believe at Steemit. I am just posting and not into reading everything about it, which is wrong. Good thing I saw this post of yours that will lead me to believe Steemit will help me just in case someone steal my account.

Your so right thank you for the valuable information for newbie like myself I'm learning all the time. I will try out the Vessel

i fully agree with you. you can also play in steems new market with the crypto. currently it is very profitable. at least for me it is. good luck on ur journey.

Ehhh. I'm not convinced

Thanks for the great information. You are genius enough to understand the problem one has to face in it. So far as my knowledge concern, this community is not old enough, so every now and then various innovations are taking place on it. So we should be very careful about our hard work earnings. Thanks friend, your advices are great assets for us. You are fantastic, wish you a very beautiful time ahead my friend.

Steem is amazing and will be worth more than $10 soon I hope!!

I just learned a heck of a lot...
Which is always fun!

If I had a bot to award you some token of gratitude in the form of something I have yet to fully understand, I would certainly do so!

Security is key for any prominent player in the crypto space. It needs to be a differentiator in this verticle. Go Steem Goooo

like wallet

I am also trying myself to be aware of how steems are secured in my wallet.

  1. It takes time to powerdown the bunch of steem power
  2. it also takes some times to withdraw steems from savings
  3. the password is horribly amazing. I always have to put it in somewhere and use it.
  4. I think it is worth to invest money in steem because you can get redeemeed by giving an upvote to other artlcles.
  5. I personally hope that Steemit itself becomes a huge platform where people write about their stories and articles or work as social network service like FB or Twitter in the near future :-)

Wow bro.. you have been working really hard ! Keep up the good work :)

Wow bro.. you have been working really hard ! Keep up the good work :)

SMT has a nice security platform. Always a plus.

Por favor, necesito que me den su voto en cualquiera de mis publicaciones, lo agradecería mucho

Please I need you to give me a vote in any of my posts I would appreciate it very much

Great point about Steem.

Security is the biggest concern in this space and being one of the first to tackle it will be huge!

Awesome post!

Outstanding post and narrative. Thank you for sharing!

hello there dear steemit group could you upvotes me and follow me @alhmali

It's great to know that so much effort goes into making Steemit more secure, good job guys!

It seems like about 90%+ are total newbies who have never been exposed to much of Bitcoin's history or philosophy.

I would like to give me avoise .

What do you guys think of Eidoo? For Ether?
It's part of the Swiss system.
I been looking for a good wallet for a while for some reason find offline wallets not too secure or maybe it's just me. Any insights on this?

I am amazed that you left out KeepKey. Arguably the best hardware wallet. If people are going to keep any sizable amount of bitcoin they really should have it on a hardware wallet. Too much info on the other wallets which are not secure and I think is confusing newcomers which ostensibly is the reason you write the pst on steemit.

This is good to know, thank you @acidyo! Will have to get my hubby to sign up on steemit and rather invest here :) Very scary that one could lose cryptos elsewhere. Our cash is also not safe in the banks!

Thanks for your post @acidyo.

yes Steem wallet is very good