CYPHER-TAG ENCRYPTION SYSTEM

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Overview: 

In the modern crypto world the “Crooks” have evolved. The latest issue in the market reported 25th September 2021. “4Million in Crypto hijacked when burglars stole safe!”. Crypto Exchanges have been hacked stealing over 600Million USD worth of crypto currencies globally in the last 6 months.

Criminals have evolved and understand the value in crypto currencies especially the leading 2 Bitcoin and Ethereum. They also know that most people do not know how to truly protect their asset. These crypto assets are actually “Bearer” held assets. The bearer of the asset gets paid in full if the exchange it for goods, services or any fiat currency on the planet.

This happened because they had a hard wallet (Cold Storage); this is a device that securely secures the crypto inside the device. It is quite safe in the fact that if you do not know the up to 8 alpha/numeric pin and make 3 attempts to unlock the device, it instantly reformats itself and is rendered useless to anybody.

The Device can be completely set up with all of its previously stored crypto with the BIP32 Recovery phrase. This is a special set of English words that will automatically convert the Unique Hexidecimal binary code that unlocks your crypto a set of sequential “Words”. It is sometimes called the “Seed phrase” or “Recovery Phrase”. All a user needs to do is install the correct “seed phrase” into any BIP32 compatible cold storage wallet. Below are the 4 most common and trusted devices.

In total there are 2048 registered BIP32 words and each word has a registered sequential number. Eg 1 = abandon and word 357 = clutch

You may have seen different recovery phrase lengths for different wallet types and wondering why? 

In basic terms, the more words in the phrase the more encryption difficulty it has. For example a 12 word phrase has 128bit encryption and a 24 word phrase has 256bit encryption. 

Cold storage wallet is the first step in taking control of crypto currency security. With Hackers rife on the planet from all nations and data travelling at light speed globally, plus the fact that Bitcoin on its own has average increased value of over 200% per annum, and the fact that cybercrime is very difficult to manage and expensive to trace and enforce due to the international jurisdictions and laws, you can see why it is very lucrative for hackers to prey on the easy pickings around the world. 

By taking the step to move your currencies from your hot wallets (Online Apps usually held on crypto exchanges globally), you reduce all of the risk related around hackers and you are taking responsibility for your precious various crypto assets.

Even Seed protected online hot wallets can be risky (such as Exodus etc) as you are trusting that they do not leak your private key or they get compromised by the thousands of hackers out there in the world. You hear of API hacks and loop holes all the time getting exploited and this is how most information is leaked on the internet.

Below is a set of options for Cold Storage wallets that you should look into to work out the best option for you. Personally, I use Ledger nano-X & Nano-S products but please do your own research as this is not advice of any kind. (I have no affiliation with any of the below manufactures, I have simply put them there for your ease of research.

See our 12 Best Wallets of 2022 below.

The Above options for hard wallets takes your digital currency off the exchanges which you hear get hacked all the time.

Cold storage takes your crypto off the internet as such and hard codes it into a device designed to be treated as a vault of security. The devices never share your private keys with the internet when connected to transact, they actually are used for permission authentication only. Your secret or private key is never “Broadcasted” this includes on wireless and Bluetooth transmission levels as well. This take out a large part of risk from the “Online phenomenon”. This does not, however tackle the “Physical Risk” 

Look at what the risks are with crypto total loss:

Lets start with the most common risks and I will address each in detail.

1. Compromised Cold Wallet Access Pin – leaked to the internet or to another human.

- To be a big risk, the leaked pin number would have to be used on the actual physical device to unlock your Cyber Vault and that would end up bad. Anyone with a $50 smart phone can load the app that accompanies the device and use your pin to transfer all of your crypto to another set of wallets and your crypto is now gone forever. Remember the most of these devices have a “Three Strikes” protocol built into them. This means that if you get someone that stumbles onto your physical device and they do not have the access pin number, they will only have 3 attempts to “Crack it”. On the third attempt, the device automatically formats itself back to factory fresh condition. This is to prevent “brute force” attacks on the device. (this is where you have unlimited number of tries and eventually you may succeed at unlocking the device.

2. Lost Pin 

- This will reformat the device on the third failed attempt. This is not the end of your crypto, as long as you have your recovery phrase, you can access any BIP32 manufactured device and get access to you vault.

3.  Lost “Seed” Pass phrase 

- This If you lose this and cannot access your device via the Pin number within 3 attempts, and you have no back up of this, then your crypto is lost forever.

4. Stolen  “Seed” Pass phrase 

- This is a “Time Critical Catestrophic event” unless you are lucky enough to have a back up of this and can get access to it fast and transfer all of your crypto assets another set of wallets, then you’re thief will use or move your crypto assets to their own store of wealth and you will not be able to recover this.

5. Natural disaster: floods

- If your device is lost in a flood and your seed phrase was also lost in a flood (on paper or cardboard) then your crypto is lost forever.

6. House/building fires.

- If your cold storage wallet is burnt up in a house or building fire along with your seed phrase and you have no back up of the seed phrase, your crypto is lost forever.

7. Physical theft of the cold storage wallet.

- Without the recovery phrase, the assailant will basically have obtained nothing but a piece of useless hardware and on 3 failed access attempts, it will reformat. The issue arises if they happened to steal a complete safe with the Seed phrase inside with it. It that happens, all your crypto is lost forever to the criminal.

8. Physical theft of the recovery phrase.

- If your recovery phrase is stolen, then your crypto is gone forever.

With all of the above risks and outcomes there must be a better way to this right?

Fire and floods; you can make your recovery phrase of a disaster proof material. The risk is it can still be lost or stolen and if someone gets hold of it, your crypto is gone as the phrase is in plain sequential English.

Make multiple copies of the Seed Phrase out of a non destructible material; This sorts the lost problem but does not sort the problem if someone gets your new indestructible seed phrase and is faster at you to access and switch it all over to a new set of wallets all of your crypto is gone forever.

But what if there was a different way. 

This leaves 2 other options, which we can assist and guide you with each.

Cypher Tag Physical Seed Phrase Encryption System

Once an NDA (Non-Disclosure Agreement) is signed, we will use secure encryption video methods or we will set up a one on one consultation meeting to show you some very secure methods to implement a robust system to create your own encoding with our tools that only you will know. We will guide you through the whole process and then you will get to test your new encryption on another device. 

We give you peace of mind that you will have a complete understanding on just how powerful this system. This is the reason we will never broadcast out methods on the internet as it will simply give the criminals the tools to attempt to “Crack the safe” The beauty of our system is that every one will have a different system and random method they have used.

Multi Signature protection

This is only possible in Bitcoin and Ethereum as far as we know. It is complex, however it is extremely secure. It requires multiple signatures to “Release the Crypto” this is a great option if you want to manage estate planning and has options of getting 2 or more signatures to create a quorum which then allows the transaction to progress.

This is by far the most secure option is complex but to establish a fail safe option that cannot be compromised, we can educate and assist you with setting this up.