The cryptocurrency exchange Bybit was hacked for more than $1.4 billion worth of Ethereum on February 21st in what cybersecurity experts are calling the largest-ever crypto theft.

According to Chainalysis, 2024 saw 303 individual hacking incidents, up from 282 in 2023, with stolen crypto funds totaling $2.2 billion—a 21.07% increase from the previous year. Hacking remains a major barrier to cryptocurrency adoption. Cryptocurrency exchanges are a major target for hackers, with more than $1.7 billion stolen in 2023 and $3.8 billion stolen in 2022.

No Passwords and Seed Phrases: A Guide to Ballet’s Security Protocol

Cryptocurrency storage often relies on passwords and seed phrases to protect private keys. This approach places a burden on users to create, remember, or securely store these credentials. Ballet takes a different approach, offering the highest security without the need for users to manage passwords or seed phrases, making crypto storage simpler.

To understand how Ballet eliminates the need for passwords, it's essential to understand Ballet’s BIP38 standard and our security protocol.

BIP38: The Encrypted Private Key Method

Ballet uses the BIP38 (Bitcoin Improvement Proposal 38) standard, which allows for the encryption of private keys with a passphrase. Unlike BIP39, BIP38 does not require users to manage a separate seed phrase. Instead, it provides an additional layer of security by combining encryption with the ease of storing the passphrase on the Ballet card itself.

The encryption is done in such a way that even if the private key entropy is exposed, it remains useless without the corresponding passphrase.

Ballet's 4 security protocols:

1. Two-Factor Private Keys (2FPK)

Ballet’s Two-Factor Private Keys (2FPK) combine two distinct components: passphrase entropy, which is printed at the bottom of the card, and private key entropy, which is a yellow QR code sticker on the card. Together, these components generate a full private key for your crypto assets. When it's time to transfer or send your cryptocurrency to an exchange, you will need to enter the two components on the app.

What's on Your Ballet Cold Storage Card?

2. Two-Factor Key Generation (2FKG)

What makes Ballet unique is the process by which these two critical components are generated. The two components of the private key are generated in different geographic locations by separate teams, ensuring that no single entity ever has access to both components. This separation reduces the risk of exposure or compromise during production. 

This means that no employees at Ballet can ever have access to both private key components. This patented solution gives you the highest level of confidence in the cryptographic elements of Ballet products.

Check the Graphic Form about Two-Factor Key Generation

3. Tamper-Evident Protection

Ballet cold storage cards come with tamper-evident protection. Each card is sealed with a tamper-evident sticker that safeguards the private key components during manufacturing and shipping. Users can easily verify if the card has been tampered with by checking for any signs of peeling or scratching.

4. The Simplicity of No Passwords

Ballet’s security protocol eliminates the need for passwords and seed phrases entirely. Security is built into the physical product and its secure manufacturing process. By storing the private key entropy and passphrase entropy offline, Ballet significantly reduces the risk of cyberattacks or hacking. This approach not only simplifies crypto management but also makes it accessible to everyone, regardless of technical expertise.

Get Started with Ballet Cold Storage Wallets Today

Take control of your asset security today with Ballet. Ballet Cold Storage Wallets  is 100% offline and self-custodial. It protects your digital wealth from exchanges and cyber threats and requires no account setup—just load crypto onto the card and instantly transfer ownership by handing it to someone. It’s an ideal way to safeguard and pass down your crypto.

• Secure: No electronics, no chips, 100% offline cold storage ensures peace of mind. 

• Reliable: Trusted by crypto professionals and pioneers, Ballet cold wallets have secured over $800 million in digital assets worldwide.

• Beginner-Friendly: No account setup or technical expertise required—perfect for newcomers looking for a straightforward storage solution.

• Industry-Leading Technology: Ballet uses two-factor private key generation based on BIP38 open-source standards for enhanced security.

• Seamless Gifting: Easily load cryptocurrency onto the wallet and share it with family members as a gift or inheritance.

Useful Links: 

Ballet Official Online Store

Anti-Counterfeiting Guide

Download Ballet Crypto App

 

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