On July 16, the Bitkey team announced a new partnership with MoonPay, expanding the options for users to purchase Bitcoin.
Bitkey is a self-custody Bitcoin wallet developed by Block, Inc. (formerly Square, Inc.), launched globally in December 2023. This wallet integrates a mobile app, a hardware device, and a set of recovery tools, providing users with a secure and user-friendly way to manage their Bitcoin. Bitkey employs a 2-of-3 multi-signature system, ensuring that two of three keys (held on the mobile app, hardware device, and server) are required to authorize transactions, enhancing security and control. The wallet’s recovery tools include cloud backup, trusted contacts, and an emergency access kit, which help users regain access to their funds if they lose their devices.
According to the Bitkey team’s blog post, this collaboration aims to simplify the process of acquiring Bitcoin by incorporating MoonPay’s extensive payment capabilities, including debit and credit cards, Apple Pay, Google Pay, and bank transfers. Additionally, MoonPay offers the unique ability to buy Bitcoin using PayPal, now available in the UK and the EU (excluding Croatia, Hungary, and Iceland).
Integrating MoonPay into the Bitkey ecosystem allows users to see it alongside existing partners such as Cash App and Coinbase within the Bitkey app. This move is designed to enhance the user experience by providing a more seamless and transparent process for buying Bitcoin. Users can initiate Bitcoin purchases directly from the Bitkey app, which redirects them to the partner’s platform to complete the transaction, ensuring ease of use and maintaining control over their assets.
Bitkey emphasizes transparency in its operations by collaborating with partners to display the full cost of transactions clearly. This includes the exchange rates and payment processing fees, giving users a comprehensive understanding of the costs involved.
In addition to the new partnership with MoonPay, Bitkey has introduced several updates aimed at improving user experience. Recent enhancements include the ability to enroll multiple fingerprints for added security, an expected transactions feature to monitor incoming transfers, and options for biometric sign-in.
Key Features of Bitkey
Bitkey employs a sophisticated 2-of-3 multi-signature wallet system to ensure the security of Bitcoin assets. This setup involves three private keys: one on the user’s phone, another on a hardware device, and a third stored on Bitkey’s server. For any transaction to be authorized, two out of these three keys are required, adding robust layers of security.
The mobile key allows users to initiate and sign payments directly from their phone within a predefined limit. This key also has an encrypted backup stored in the cloud, which is essential for recovery if the phone is lost. For transactions exceeding the mobile limit or for making changes to the mobile limits, the hardware key plays a crucial role. This key not only co-signs these higher-value transactions but also aids in recovering the mobile key and adjusting security settings.
The server key, maintained by Bitkey, assists in initiating and signing transactions within the mobile limit. It is also integral to the wallet recovery process if both the phone and hardware device are lost.
Unique Hardware and App Integration
Bitkey’s hardware key, which connects to the phone via NFC technology, provides an additional layer of security. The hardware key enhances the wallet’s overall safety by requiring its presence for certain high-value transactions and security adjustments. Meanwhile, the Bitkey app functions as the control center, allowing users to manage Bitcoin transactions, adjust security settings, and initiate recovery processes.
Recovery Solutions
In the event of phone loss, users can download the Bitkey app on a new device and use the hardware key to recover their wallet. If the hardware device is lost, the app facilitates a recovery process that includes a 7-day security waiting period, which can be expedited with the help of trusted contacts. For cases where both the phone and hardware are lost, users can rely on trusted contacts set up in the app to verify their identity and recover their wallet.
