How does Square handle the holding of digital assets?

3 answers

• Nov 26, 2021 · 3 years ago
  Square takes the storage and security of digital assets very seriously. They use a combination of cold and hot wallets to store the assets. Cold wallets are offline storage devices that are not connected to the internet, which makes them less vulnerable to hacking. Hot wallets, on the other hand, are connected to the internet and are used for day-to-day transactions. Square employs strict security measures to protect the private keys associated with the wallets, including multi-factor authentication and encryption. Additionally, they regularly conduct audits and penetration tests to identify and address any vulnerabilities in their systems.
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• Nov 26, 2021 · 3 years ago
  When it comes to holding digital assets, Square has implemented robust security measures. They utilize a combination of hardware security modules (HSMs) and multi-signature technology to ensure the safety of the assets. HSMs are specialized devices that securely store private keys and perform cryptographic operations. Multi-signature technology requires multiple authorized signatures to access and transfer the assets, adding an extra layer of security. Square also follows industry best practices for data protection and regularly updates their security protocols to stay ahead of emerging threats.
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• Nov 26, 2021 · 3 years ago
  Square's approach to handling digital assets is similar to that of other reputable exchanges. They prioritize security by using a combination of cold and hot wallets, as well as implementing strict security measures such as multi-factor authentication and encryption. Square also conducts regular security audits to identify and address any potential vulnerabilities. Overall, Square's commitment to the security of digital assets is commendable and provides users with peace of mind.
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