What are the benefits of using a Key Recovery Service?

There are several reasons why you might want to select a Key Recovery Service:

1. Ease of use

Creating a secure wallet can be challenging due to the security risks involved. It is recommended that all keys are generated on separate machines, with the backup key placed offline in a secure location. Many users don’t want the burden of securing keys or remembering difficult pass-phrases at the risk of losing their funds.

2. Keys generated separately by separate entities

In certain wallet creation flows, such as the trustless 2-of-3 multi-sig wallets, many wallet providers create 2 of the 3 keys online on the same machine. This can be insecure if that machine were compromised. When using a KRS-enabled wallet, each of the three keys are generated on separate machines.

3. Offline keys

KRS providers that BitGo partners are required to create and store keys offline, thereby reducing any risk associated with generating keys on machines that have a connection to the Internet. 

4. Secure recovery process

Some KRS providers can provide strong recovery requirements for users seeking to recover funds. Please ensure that the KRS you select has recover policies that meet your security and verification standards.

 

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