Blockstream Unveils Bitcoin Storage System Based on Thales Technologies

Blockstream, a company developing infrastructure for Bitcoin, has introduced a new institutional digital asset custody system, created in collaboration with the French technology group Thales. The solution combines Thales hardware security modules (HSM) and Blockstream's Secure-MPC secure multiparty computation technology.

The system allows institutions to confirm transactions by performing cryptographic operations within specialized secure equipment. According to Blockstream, unlike some traditional MPC implementations, the entire transaction signing procedure in the new architecture takes place directly in the secure HSM environment.

Why Adam Back Advocates for Cold Storage

Blockstream co-founder and CEO Adam Back believes that traditional MPC protocols are too complex and require intensive interaction between devices. In his opinion, this complicates their use for fully autonomous cold storage.

Back also pointed out the risks of internet-connected storage infrastructure. As an example, he cited the Binance hack, which in the original material is estimated at $6.3 billion. According to Binance's investigation, attackers compromised employee devices and obtained credentials that allowed them to access the transaction signing infrastructure.

According to Back, even using firewalls and other network protection tools does not eliminate unauthorized access. Disconnecting devices from the internet can reduce such risk by limiting opportunities for system penetration.

How AI Changes Security Threats

Back warned that artificial intelligence could complicate the protection of storage systems. In particular, AI can help attackers detect small implementation errors in complex MPC protocols that are difficult to notice during regular checks.

He expressed hope that industry participants will more frequently use autonomous storage models and transfer assets to cold wallets to reduce exposure to such threats.

"Complexity is the enemy of security. The answer lies in returning to basics: simply storing assets in cold mode," Back stated.