The electronics giant Samsung announced its plans to integrate a cold crypto wallet into the upcoming model Galaxy 10.
The features provided by the Samsung crypto wallet
In the article published on SamMobile, the largest online Samsung community, the senior executive editor Adnan Farooqui reveals some details of the new app.
According to Farooqi, the cryptocurrency service will consist of two parts. There will be a cold wallet with enhanced security for storing cryptocurrency and a hot one for daily transactions with the possibility to view the account information and transaction history.
Users will be able to create new wallets right in the app as well as import their existing wallets such as Metamask or TrustWallet. Initially, the Samsung wallet will come with Bitcoin, Bitcoin Cash, Ethereum and ERC-20 tokens support.
To provide crypto funds’ security, the Samsung Bitcoin app will support PIN and fingerprint for a start. Also, Samsung plans to add the iris scanner in the future. In order to restore the wallet, the users will be provided with the recovery phrase.
However, there is still no information on whether Samsung itself would get access to the users’ imported wallets. SamMobile claims that accounts created using the app will be stored on the blockchain network with absolute anonymity and that Samsung won’t have access to the data. But how can the service guarantee that?
Why integrate crypto wallet
Samsung is the largest South Korean company that aggregates many economic sectors such as car manufacturing, online payments, insurance and many more. At the beginning of 2018, it has entered the cryptocurrency area by offering the mining equipment to ship to international distributors.
Unlike other local conglomerates, Samsung has decided not to concentrate on creating its own cryptocurrency trading platform, but to base on the existing line of products. In order to launch own trading platform, Samsung would need to build a totally new infrastructure similar to what Shinhan Bank has done with Gopax. This would turn out to be a rather costly enterprise with no guarantee of paying off.
Instead of testing a new niche, Samsung has forwarded resources to develop a product that is very closely linked to what they have been successfully offering before.
Small crypto startups meet hard times
With cryptocurrency market being on the rise in 2017, many startups have appeared offering the services to facilitate Bitcoin mass adoption for end users. The main idea of these startups was to beat the dominating IT companies such as Samsung, Apple, Huawei and others who were not so eager to implement the new technologies.
However, with the IT giants gradually adding cryptocurrency wallets and other blockchain features to their products all these startups are going to become useless and simply driven out of the market by huge players.
One of such startups, Sirin Labs, has raised around 158 million USD via initial coin offering to create a mobile phone with native cryptocurrency support. There were even talks on the media about Huawei planning to set up the partnership with them in March 2018. But there has been no more news of that kind ever since.