Self-custody is important in cryptography, and security is essential to self-custody. Ledger, a notable hardware wallet maker, has built its reputation on securely storing users’ private keys. Hardware wallets create a secure offline environment to store keys and use them to execute transactions.
The user’s private keys are generated and stored inside the device and are never supposed to leave it. This “cold storage” provides an unmatched level of security compared to “hot wallets” or online wallets. The problem is that many people lose their keys.
J.W. Verret is an Associate Professor at George Mason University Antonin Scalia School of Law. He is a practicing crypto forensic accountant and also practices securities law at Lawrence Law LLC. He is a member of the Advisory Council of the Financial Accounting Standards Board and a former member of the SEC Investor Advisory Committee. He also runs the Crypto Freedom Lab, a think tank fighting for policy change to preserve the freedom and privacy of crypto developers and users.
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