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Who Am I? 
• Will O’Brien 
• CEO & Co-Founder of BitGo 
• FinTech, trading platforms and capital markets 
• Startups and m...
BitGo: Securing the World’s Bitcoin 
Leading Bitcoin security platform and pioneer in 
multi-sig technology 
Launched the ...
What Types of Customers Use BitGo? 
Why They Choose 
BitGo: Family office 
investors 
Hedge funds 
Bitcoin miners 
eCommer...
“This is the year of the multi-signature wallet.” 
-- Gavin Andresen, chief scientist of the Bitcoin Foundation, May 2014 ...
0.831% 
source: p2sh.info 
% of all bitcoins stored in multi-sig wallets 
6 Copyright © 2014 BitGo, Inc.
We Know Security is a Fundamental Threat 
“$1.2M hack shows why you should never store bitcoin on 
the internet.” 
“From t...
Does This Even Qualify as “Digital” Currency? 
The Bloomberg reporter opened up his paper 
wallet to show the private key,...
We Need a Secure Bitcoin Ecosystem 
Consumer 
Financial 
Services Payment 
Processing 
Apps 
9 Copyright © 2014 BitGo, Inc...
Multi-Sig: The Digital Equivalent of a Safe 
Deposit Box 
Multi-sig!  335Zc8furTKgD32bWewYwGYGai7sMrtKse 
19frDKN7XwWL2ww...
Multi-Sig Solves the Trade-Off of Security 
and Ease of Use 
Security 
11 Copyright © 2014 BitGo, Inc. 
high 
Ease of Use ...
Single Key vs Multi-Sig Wallets 
Single Key Threat Vector Multi-Sig Solution 
Customer loses private key or 
password 
Rec...
13 Copyright © 2014 BitGo, Inc.
14 Copyright © 2014 BitGo, Inc.
15 Copyright © 2014 BitGo, Inc.
16 Copyright © 2014 BitGo, Inc.
17 Copyright © 2014 BitGo, Inc.
Call to Action for the Industry: 
Embrace Multi-Sig as a Standard 
• Based on P2SH (BIP 16) 
• Build it internally or use ...
Analogy: Origins of SSL the Standard 
19 Copyright © 2014 BitGo, Inc.
Case Study: Enterprise Corporate Holdings 
Customer needs enterprise-grade security for its 
bitcoin holdings and outside ...
Bank-Grade Software for Bitcoin 
Multi-user enterprise wallets with network fraud detection, 
spending limits, whitelisted...
22 Copyright © 2014 BitGo, Inc.
23 Copyright © 2014 BitGo, Inc.
24 Copyright © 2014 BitGo, Inc.
25 Copyright © 2014 BitGo, Inc.
Case Study: Trading Operations 
Customer needs the ability to share wallets with 
pre-set rules to initiate transactions 
...
Case Study: Multi-Sig Custodial Accounts 
• Remittance 
• Escrow 
• Auctions 
• Real estate 
27 COPYRIGHT © 2014 BITGO, IN...
After Multi-Sig: Future of Bitcoin Security 
• BIP 32 HD (hierarchical deterministic) wallets 
• Corporate treasury polici...
Thank you. 
will@bitgo.com - @willobrien 
sales@bitgo.com - @BitGoInc 
29 Copyright © 2014 BitGo, Inc.
It's Time to End the Cold Storage Ice Age and Adopt Multi-Sig
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It's Time to End the Cold Storage Ice Age and Adopt Multi-Sig

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"It's Time to End the Cold Storage Ice Age and Adopt Multi-Sig"

A talk by Will O'Brien, CEO of BitGo, at Inside Bitcoins 2014.

Published in: Technology
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It's Time to End the Cold Storage Ice Age and Adopt Multi-Sig

  1. 1. Who Am I? • Will O’Brien • CEO & Co-Founder of BitGo • FinTech, trading platforms and capital markets • Startups and mid-size companies in consumer, payments, video games, and media • Computer Science, Harvard; MBA, MIT Sloan • Obsessed with Bitcoin since 2012 2 COPYRIGHT © 2014 BITGO, INC.
  2. 2. BitGo: Securing the World’s Bitcoin Leading Bitcoin security platform and pioneer in multi-sig technology Launched the world’s first multi-sig wallet in August 2013 $14m in total funding from veteran investors and finance luminaries 3 Copyright © 2014 BitGo, Inc. Our products: • BitGo Enterprise • Platform API/SDK
  3. 3. What Types of Customers Use BitGo? Why They Choose BitGo: Family office investors Hedge funds Bitcoin miners eCommerce companies Marketplaces Exchanges • Secure storage & transactions • Corporate treasury policies • Multi-user wallets • Financial reporting & audit capabilities 4 Copyright © 2014 BitGo, Inc.
  4. 4. “This is the year of the multi-signature wallet.” -- Gavin Andresen, chief scientist of the Bitcoin Foundation, May 2014 5 Copyright © 2014 BitGo, Inc.
  5. 5. 0.831% source: p2sh.info % of all bitcoins stored in multi-sig wallets 6 Copyright © 2014 BitGo, Inc.
  6. 6. We Know Security is a Fundamental Threat “$1.2M hack shows why you should never store bitcoin on the internet.” “From treasure to trash: Man tosses out bitcoin wallet on hard drive worth $9 million.” “To achieve wider adoption, bitcoin needs to address significant issues related to security…Mt. Gox was like a bank storing valuables in the lobby entrance.” “Some see the security issues as teething pains, but it is possible that the security of the core transactions technology will be outweighed by the insecurity around the core...almost 10% of all Bitcoins have been stolen or seized as part of a criminal venture in the last year.” 7 Copyright © 2014 BitGo, Inc.
  7. 7. Does This Even Qualify as “Digital” Currency? The Bloomberg reporter opened up his paper wallet to show the private key, and, not too surprisingly, the funds were quickly stolen. “ ” 8 Copyright © 2014 BitGo, Inc.
  8. 8. We Need a Secure Bitcoin Ecosystem Consumer Financial Services Payment Processing Apps 9 Copyright © 2014 BitGo, Inc. Wallets & Vaults Trading & Exchanges Mining
  9. 9. Multi-Sig: The Digital Equivalent of a Safe Deposit Box Multi-sig!  335Zc8furTKgD32bWewYwGYGai7sMrtKse 19frDKN7XwWL2wwhz35as7PtRFcL4vCNYG 10 Copyright © 2014 BitGo, Inc. Not multi-sig 
  10. 10. Multi-Sig Solves the Trade-Off of Security and Ease of Use Security 11 Copyright © 2014 BitGo, Inc. high Ease of Use desktop wallets low low high multi-sig wallets hosted wallets, vaults & exchanges (single key cold storage) paper wallets offline storage brain wallets
  11. 11. Single Key vs Multi-Sig Wallets Single Key Threat Vector Multi-Sig Solution Customer loses private key or password Recover wallet with Backup Key Customer’s login credentials stolen 2-factor authentication and fraud detection Server key stolen or service provider unavailable Customer still has 2 keys and can transact directly on the blockchain Malware, fraud or insider theft within customer’s organization Service layer corporate treasury policies: spending limits, whitelisted addresses and secondary approvals 12 Copyright © 2014 BitGo, Inc.
  12. 12. 13 Copyright © 2014 BitGo, Inc.
  13. 13. 14 Copyright © 2014 BitGo, Inc.
  14. 14. 15 Copyright © 2014 BitGo, Inc.
  15. 15. 16 Copyright © 2014 BitGo, Inc.
  16. 16. 17 Copyright © 2014 BitGo, Inc.
  17. 17. Call to Action for the Industry: Embrace Multi-Sig as a Standard • Based on P2SH (BIP 16) • Build it internally or use a security platform provider Key Tenets: • Funds held on blockchain in multi-sig, not in cold pools • Maintain independent auditing of holdings • Enable customer segregated accounts (where appropriate) • Set corporate treasury policies and protections • Leverage security of multi-institutional key distribution – Use a 3rd party co-signer on transactions – Store backup key with a custodian 18 Copyright © 2014 BitGo, Inc.
  18. 18. Analogy: Origins of SSL the Standard 19 Copyright © 2014 BitGo, Inc.
  19. 19. Case Study: Enterprise Corporate Holdings Customer needs enterprise-grade security for its bitcoin holdings and outside auditor views • Create a BitGo multi-sig wallet for your corporate holdings. Set low spending limits for additional security. • Add officers as administrators on the wallet. Add members of the Finance team as spenders. Add outside auditors as view-only. • Use reports for monthly financial statements. 20 BitGo, Inc. Confidential
  20. 20. Bank-Grade Software for Bitcoin Multi-user enterprise wallets with network fraud detection, spending limits, whitelisted addresses, approval chains and financial reporting Corporate Holdings Wallet Accounts Payable Wallet Marketing Dept. Wallet Wallet purpose Primary holdings Pay suppliers and vendors Advertising payments Spending limit $100,000 $10,000 $5,000 Admins CEO, CFO, COO CFO, VP Finance, Dir. Accounting CFO, VP Finance, VP Marketing Spenders VP Finance Members of Finance and Accounting teams Members of Marketing team Auditors Financial analyst, outside auditor Financial analyst, outside auditor Financial analyst, outside auditor 21 Copyright © 2014 BitGo, Inc.
  21. 21. 22 Copyright © 2014 BitGo, Inc.
  22. 22. 23 Copyright © 2014 BitGo, Inc.
  23. 23. 24 Copyright © 2014 BitGo, Inc.
  24. 24. 25 Copyright © 2014 BitGo, Inc.
  25. 25. Case Study: Trading Operations Customer needs the ability to share wallets with pre-set rules to initiate transactions • Create a unique BitGo wallet for each trading partner • Add your trading partner to the wallet to spend and approve transactions • Queue orders by depositing BTC in the wallet. When a price is hit, the trader can withdraw from the wallet • Spending limits can be set to require secondary approval for large orders • Reconcile trades at end of period using BitGo reporting 26 BitGo, Inc. Confidential
  26. 26. Case Study: Multi-Sig Custodial Accounts • Remittance • Escrow • Auctions • Real estate 27 COPYRIGHT © 2014 BITGO, INC.
  27. 27. After Multi-Sig: Future of Bitcoin Security • BIP 32 HD (hierarchical deterministic) wallets • Corporate treasury policies • Industry standards for managing keys • Hardware fobs and security modules • Multi-institutional models of trading and settlement Read more…. https://medium.com/@willobrien/its-time-to-end-the-cold-storage-ice-age-and-adopt- 28 Copyright © 2014 BitGo, Inc. multi-sig-8589733c9fd6
  28. 28. Thank you. will@bitgo.com - @willobrien sales@bitgo.com - @BitGoInc 29 Copyright © 2014 BitGo, Inc.

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