Tezos (XTZ) partners with Hub Security to secure validators’ stake

Written by: Ali Raza
December 21, 2020
  • New protocol will provide better security for the encrypted keys and will allow the network to run smoothly.
  • The secure servers will be controlled by a network validator using a two-factor authentication.
  • The proof-of-sake-based network will offer a better security framework and keep users’ encryption key safer.

Israeli-based Tezos (XTZ) has announced a partnership with cybersecurity company Hub Security to develop a physical security framework to secure validators’ stake.

The two firms are introducing the security framework which will enable validators to secure their encryption keys on a physical box or the cloud.

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The security module was developed by Tezos. The system will guard the servers using a combination of both physical and network security features.

Secure servers will be controlled by a network validator and a mini security module, providing a two-factor authentication similar to what is used in banks and other financial institutions.

The network security uses Proof-of-stake

Eli Terdjman, Chief Executive Officer of Tezos, also stated that network security is not like Bitcoin’s security that is based on electricity consumption. He said Tezos’s network security is far more efficient and less expensive because it uses proof of stake protocol.

 “Contrary to Bitcoin, the Tezos network security is not based on consuming electricity, but on proof of stake,” Terdjman stated.

The protocol will enable the Tezos network blockers to maintain a larger holding position for Tezos funds for validation of transactions.

According to the announcement, the collaboration is coming at a time when blockchain-based firms are experiencing increased attacks. Both firms want to set up the security infrastructure to prevent the abuse or theft of users’ encryption keys.

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Providing better security

According to Terdjman, a lot of bakers utilize cold wallets that store the encrypted keys which need to be physically connected to the computers.

He further explained that the partnership between both companies will enable Tezos to keep the keys more secured and distance it a bit far from the computer running the network.

The new protocol will make sure the encrypted keys are placed in a secure environment, which will enable the network to run flawlessly.