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Not Your Keys, Not Your Coins

There is a general concern in the blockchain and cryptocurrency community that the toll-collectors, intermediaries and institutions that Satoshi Nakamoto gave an alternative to with Bitcoin is slowly but surely taking over the cryptocurrency markets.

You see this on cryptocurrency exchanges like Coinbase and Kraken, centralised exchanges that hold private keys for their users.

You see this on interest-bearing cryptocurrency accounts like Crypto.com and Compound that hold private keys for their users.

You see this on cryptocurrency debit cards like Xapo and Wirex that hold private keys for their users

With continues security issues and these platforms being vulnerable to hacks, there is a growing movement dubbed Not Your Keys, Not Your Coins. A movement you see everywhere online like the Twitter hashtag #notyourkeysnotyourcoins, Reddit threads Not your keys not your coins and much more. This movement has the individual user’s interest in mind, because when each user hold their own private keys, they are safeguarded from wide-scale hacks and hence their funds being stolen.

Centralised vs decentralised platforms

Blockbasis was born decentralised, and intends to push the blockchain and cryptocurrency community towards less centralisation where users hold their own private keys. You see this every time you need to make a transfer or a trade on Blockbasis, where you will be asked to unlock your account with a passphrase, which is similar to a backup or recovery phrase. In a sense, this makes the passphrase a two-factor authentication, asking users to authenticate themselves a second time when making a transaction.

Blockbasis built on Graphene blockchain

Keep in mind, Blockbasis is built on the Graphene blockchain. This means that each transaction can be tracked on the blockchain, easy to confirm for everyone. This is radically different from centralised platforms, where each transaction is logged in a centralised database, locked away from everyone unless hackers manage to gain access. Unfortunately, users have been hurt by this in the past, and will in the future, as they have no way of knowing if their funds and transactions are actually being processed correctly, and safeguarded properly.

There are many distinguished centralised platforms that are doing an excellent job protecting their users. However, the fundamental security built into decentralised platforms where users hold their own keys, are a massive benefit. Blockbasis is leveraging that, and doing all we can to deliver the same crisp user experience on our decentralised platform, as users are accustomed to on centralised platforms.