A Special Focus on Bitcoin Wallet Security
The new Electrum 2.0 will be focusing specially on Bitcoin wallet security features. As publicized earlier, this update is hoping to add support for Trezor hardware wallets. It simply means that users will have the option to transfer their Bitcoins to a much secure and isolated environment.
Server-based Blockchain Still Troubles Users
Even with the aforementioned update, Electrum has its share of criticism for staying dependent on specialized servers to index the Bitcoin blockchain. Many users believe that such dependancies leave their transactions open to server’s inference. They however use third party cloak services to anonymize themselves from the Electrum nodes, but still are unsure if they are 100% untraceable.
But Even Bitcoin Blockchain is Traceable
Indeed! The famous public ledger of Bitcoin enables users to overlook transactions and the addressed involved in them. However, it is still tough to query the data from an entire blockchain. In case of Electrum, the subset of these Bitcoin addresses is quite smaller, and thus seem more vulnerable to traceability.
Electrum however uses the best possible means to maintain security and privacy on its network. During the installation, it offers a secret seed service (a series of random words which need to be written down in proper order) to recover lost wallets.
The Bitcoin wallet company also ensures to keep server disengaged from obtaining users’ seed and private keys. Also, the information delivered by the servers is always verified by using Simplified Payment Verification method (elaborated perfectly in original Bitcoin whitepaper).
Source : http://newsbtc.com/2015/02/24/bitcoin-wallet-electrum-2-0-release-week/
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To read the bitcoin white paper, visit: https://bitcoin.org/bitcoin.pdf
