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Square Considering Making Bitcoin Hardware Wallet

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Fri, 06/04/2021 - 15:38
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Alex Dovbnya
Square is getting into the cryptocurrency wallet business
Square Considering Making Bitcoin Hardware Wallet
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According to a Twitter thread posted by Jack Dorsey from Miami, payments giant Square is considering making a hardware wallet for Bitcoin.

He claims that it will be built "entirely in the open" while sharing some of the company's main principles.

Dorsey writes that Bitcoin is built for everyone, highlighting the importance of creating a non-custodial solution:

It's important to us to build an inclusive product that brings a non-custodial solution to the global market. Much respect to everyone who has gotten us this far. What are the biggest blockers to get a non-custodial solution to the next 100M people?

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The offering will also blend availability with security while also featuring a Layer 2 solution, which Dorsey believes is "essential" for growth:

The orders-of-magnitude growth we imagine requires a mix of custodial, off-chain, and second layer solutions that allow people to "get off of 0." What tech investments can enable seamless, scalable, L2 native support for a hardware wallet?

In addition, Dorsey wants to improve the recovery mechanism to prevent people from burning their money:

Customers have to protect recovery information from damage, loss, and theft and store secret(s). In practice, this is not yet mainstream-ready. We don't want more passwords on post-its. What best of class solutions should we consider?

Square's wallet will likely come without a display to make it more convenient and accessible. The company will also attempt to provide mobile users with "an excellent experience."

Paris-based Ledger and Prague-based Trezor are currently the two biggest companies on the cryptocurrency hardware wallet market. It remains to be seen whether Square will be able to upend their dominance.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.