Last October, British luxury mobile phone brand VERTU released the METAVERTU smartphone, which is called "the world's first WEB3 phone". In addition to the one-touch NFT generation function and mining function, this phone also has a new type of crypto wallet, the METAVERTU value wallet, which is not a software wallet in the general sense, but truly achieves unity of security and convenience. The emergence of this crypto phone can be considered as a technological innovation in today's situation where crypto assets are frequently stolen.
Starting with the explosion of DeFi in 2020 and the explosion of WEB3 applications like NFT and DAO in 2022, there will be a huge demand for putting assets in crypto wallets. However, the popularity of crypto wallets comes with many risks of theft.
Last June, close to 120,000 Bitcoin assets were stolen from Bitfinex, and in August 2021, a hacker known as Mr. White Hat exploited a vulnerability in the DeFi platform Poly Network and successfully stole approximately $600 million worth of crypto assets from Poly Network. Curiously, Mr. White Hat not only maintained an open dialogue with Poly Network officials, but also returned all of the stolen crypto assets a week later. As a result, Mr. White Hat received a $500,000 bonus and a job offer to become a senior security officer at Poly Network.
Last year, more than $3 billion was outright stolen in 125 hacks, according to Chainalysis. This shows that protecting the security of assets in crypto wallets is a great concern. Due to the immutability and irreversibility of blockchain, once the wallet's private key is compromised, theft of crypto assets is inevitable and irrecoverable.
Crypto wallets on mobile phones: hot or cold?
Anyone who knows anything about crypto wallets should know that there are two general types of crypto wallets - cold wallets and hot wallets. Simply put, a cold wallet is a device that is completely insulated from the Internet, which cuts off the possibility of hackers stealing private keys over the Internet. Although it is very secure, it can be cumbersome to perform transactions. Plus, the private key usually needs to be copied by hand onto a piece of paper, and once this note is lost, the wallet can never be recovered.
A hot wallet is the opposite of a cold wallet, it is a networked device that can be used to trade assets at any time. However, because it is network-generated, the private key is subject to hacking and Trojan attacks, making it far less secure than a cold wallet.
Crypto wallets in cell phones are usually hot wallets - because the phone needs to be connected to the internet. So what is special about METAVERTU value wallet?
Since crypto wallets can be subject to hacks, the only way of really keeping your keys safe is by using a wallet that’s not connected to the internet. So, how does VERTU implement cold wallets on cell phones? The key to the problem is an encryption chip inside its phones called A5.
The A5 chip is a device that can generate and decrypt keys independently, with a separate processor and memory unit inside. With the A5 chip, your keys are stored in the hardware, isolated from the Internet and inaccessible to external programs, thus ensuring that the private key cannot be read or cracked, thus realizing a "hardware wallet in the phone". Users need to access the wallet through a cryptographic system called Metaspace in the METAVERTU phone, which supports more than twenty cryptocurrencies. Overall, VERTU has really made a useful attempt to improve the security of encrypted phones.