An Israeli security firm has developed proprietary technology that can send blockchain transactions in real-time without connecting to the internet.
The Israeli-based startup GK8 has created a cold storage wallet that uses one-way signaling to connect to the blockchain without the internet.
As a result, transactions are recorded on a blockchain in offline mode. Nevertheless, users are able to instantly send and receive digital assets.
GK8’s wallet technology provides a unique solution for crypto exchanges, custodians, and other related businesses for whom current security measures aren’t enough.
As GK8 CEO Lior Lamesh notes, “The current cold wallet solutions try to decentralize the problem but don’t solve it.”
Unidirectional connectivity explained
The wallet’s unidirectional communication capabilities enable users to upload transaction data without risk of online interference.
As GK8 Board Member Eran Tromer explains:
“GK8’s cold wallet solution is an innovation by having unidirectional communication from the wallet to the outside and avoiding raw information from the outside back to the wallet. This reduces the attack surface and prevents attacks.”
The company’s founders realized they could connect to the blockchain without the internet by using proprietary cryptographic technology techniques.
The end result is a cold wallet with hot wallet properties.
It should also be noted that Lamesh calls the cold wallet technology “ledger agnostic”, implying that the technology could be used with Bitcoin other cryptocurrencies.
The Need for a Compelling Security Solution
Launched in 2018, GK8 was founded by current CEO Lior Lamesh and Shamar Shamai, two cybersecurity experts who once reported directly to the Israeli prime minister.
What compelled this innovation?
Lamesh explained that he and Shamai “found security vulnerabilities in one of the most secured cold wallets in the market.”
“After we saw how easy it was, we understood that hackers will invest millions to steal billions, and we decided to develop a secured end-to-end institutional tool for managing digital assets,” he said.
They then went on to host a successful fundraising event that netted them $4 million from several venture capital firms as well as from the founder of the cybersecurity giant Checkpoint.
Achieving business success
Cryptocurrency thefts are expected to reach at least $4 billion this year, meaning that proven solutions like GK8’s could be in high demand.
By disconnecting from the internet, GK8’s technology can effectively eliminate wallet hacks and attacks.
eToro, a digital asset trading platform, has already signed on to use GK8’s proprietary technology.
The founders are optimistic about their company’s future, as Lamesh notes:
“…GK8 has a fully working solution which is already securing customers who manage around $1 billion for global clients, protected by 5 patents and enjoy the trust and backing of leading cyber-security opinion leaders, partners, and investors.”
“This is supplemented by our strong team of cyber-security experts and developers whose ability to safeguard money is proven, and this has led global organizations to trust our ability to securely manage their digital assets.”
In the future, the company intends to further fortify its technology so as to attract hedge funds outfits.