Bitcoin [BTC] holders will enjoy enhanced security of a ‘firewall’ via Cerberus Protocol, claims Neil Woodfine
Neil Woodfine, a representative of Blockstream, recently announced the launch of Cerberus Protocol,
following the release of the technology’s publication on Medium. According to Woodfine, the objective of the Cerberus Protocol is to re-organize and build a non-custodial Bitcoin storage for large BTC-holders involved in businesses. The protocol is inclined towards the idea of “hybrid storage,” he said, where multi-sig keys are distributed across two organizations [Clavestone and the client]. In this manner, large Bitcoin holders’ virtual assets are protected under the enhanced security of a “firewall” with the risk of being “exposed to custodial risks.” In the Medium post, it was listed that Cerberus was intended for corporations to own Bitcoin as a collective entity, rather than a single individual being responsible for the entire capital.
Neil Woodfine stated,
“We learned a lot from the development of the idea and our conversations with potential users, things we think would be valuable for the wider industry. So we’ve distilled everything down into an easy-to-follow guide for setting up a 2-of-3 multi-sig…and how to coordinate it.”
He also clarified that the involvement of custodians did not exactly secure one’s Bitcoins funds as they could be easily compromised at the hands of a single individual. The Cerberus protocol would allow these large corporations to operate their own Bitcoin storage, reducing the involvement of middlemen, while also keeping security and usability in prime condition.
Woodfine had a word of caution though,
“Cerberus is still in early development, so definitely don’t try to start using it yet! Our hope is that by releasing the protocol in parts, we’ll be able to gather feedback from keen-eyed bitcoiners and iterate on the design to ensure we maximize security.”
The protocol gained traction in the community following the release of the first chapter of implementation.
Yuri De Gaia, Bitcoin OTC at l2bglobal, stated,
“Multisig storage is the best solution for corporate and family spending. All the elements for self-custody via multi-sig already exist, but there has been no clear protocol that applies to most situations.”
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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.