Velas Technologies: Velas Vault

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Access to decentralized employments, security of keys, and seed phrases – main advantages of Velas network for users. Data security is paramount because all user information is confidential and will not be available to third parties.

Why You Need to Take Care of Data Security

Creating an account is not the only thing that users need to work with. They also store the generated seed phrase and re-enter it for security checks. Users need to keep their keys and countersign secrets. After all, if you lose them or transfer them to other people, it will be difficult to restore access to assets, and sometimes it is impossible.

It’s important to remember! Your secret phrase = your cryptocurrency! Lose it and lose your cryptocurrency forever.

Users are personally responsible for the security of their digital assets and individual ownership and use. So, only the one who has a unique opening phrase or personal key can dispose of their crypto assets.

And it works! Because no one can protect your data better than you. We will explain why it is a bad idea to pass keys and secret phrases to centralized services:

  1. No one service can guarantee 100% protection of your data. Just one hacker attack, system failure, or untidy employee actions, and your hidden data may become available to other users.
  2. Hackers and fraud attacks – if you choose to delegate the preservation of your keys and seed phrases to third-party services, you risk becoming a victim of fraudsters. Because hackers attack databases daily, and sometimes they steal confidential information.
  3. Limitations and condition changes – any service can restrict the ownership of your assets until "clarification" is done.
  4. Your service account may be frozen or blocked – if the Police or Security requests an account, they will freeze your assets, and you will not be able to withdraw or make a deposit.
  5. Forget about anonymity – each service operates on the Know Your Client principle (KYC). This is a requirement of the FATF service. But not every client likes constant checks and information gathering.

In addition, cooperation with services involves additional costs. Therefore, users need a way to keep their data safe without third-party interference.

New Way to Secure Your Secret Data

We at Velas have a ready-made solution – Velas Vault. This is a particular repository that allows users to delegate the preservation of keys, seed phrases, and passwords. At the same time, users will be responsible for their data security.

Three key features of this blockchain solution for users:

  • The consensus algorithm (Delegate PoS) is in the user’s hands. This means protecting critical data and account access.
  • A pool of validators has got a new mission – running the RZL MPC algorithm. In addition, they have the tasks of maintaining high network performance and "transfer and storage" (Shamir’s Secret Sharing) essential components of keys and passwords.
  • Velas Vault is decentralized. It is almost impossible for hackers to access users' assets because the data is segmented, and the system lacks the essential elements necessary to access it.

Moreover, validators are interested in the success of the network. They will be rewarded for their work, and in the event of losing users' assets, they will be held accountable by their means.

How it works:

  1. The system creates tokenized Velas assets and thus speeds up BTC transactions.
  2. The repository uses several ways of user authorization, which provides additional user data protection.
  3. Velas account allows access to any platforms and storages.

We also plan to improve the Velas Passwordless blockchain solutions. Project to speed up BTC and ETH transactions by rejecting centralized exchanges. We also want to add the possibility of exchanging Bitcoin and Ethereum to other currencies.

Consider the process in more detail :

  • You bought BTC token in Bitcoin Network.
  • You want to speed up transactions with Velas blockchain and send coins to vBTC.
  • After that, you send your vBTC to another user who also has a vBTC wallet.
  • The user who received the vBTC from you translates them to the BTC address.
  • Validators check the required data and make a transaction.

Therefore, users will receive Velas tokens (VLX, vBTC, vETH, vZEC), and thus directly participate in the Velas ecosystem and expand their capabilities in the blockchain network.

Each Velas blockchain solution has two main goals – user security and simple interaction within the network. Use Velas Vault and secure your assets. Also, you see how fast BTC and ETH transactions can be.

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