Block’s innovative hardware wallet, Bitkey, is redefining the landscape of self-custody crypto storage.
Designed with a focus on security, user experience, and aesthetic appeal, Bitkey aims to address the shortcomings of existing wallets.
Its unique design, featuring a hexagonal stone component, offers a refreshing departure from traditional hardware wallets.
In this interview with Nairametrics, Thomas Templeton, Hardware Lead, Block Inc. discusses the design principles, challenges, and future possibilities of Bitkey.
With so many existing wallets, what makes Bitkey stand out? What specific problems were you aiming to solve with its design?
Thomas Templeton: The mission behind Bitkey is to widen access to self-custody and true ownership and to empower people around the world to truly own and manage their bitcoin easily and safely, unlike traditional self-custody solutions that are too complex to use for many people. With Bitkey, we wanted to build a product that helps bring everyone to self-custody, combining robust security and recovery options, with a simple customer experience that puts people in control of their money.
Bitkey uses a 2-of-3 multi-signature design that doesn’t require customers to remember long passwords or seed phrases: it uses three keys to secure bitcoin, and any two keys working together are needed to move bitcoin or approve other security-related actions like initiating recovery or modifying security settings.
Two keys are in customers’ hands. One is in the mobile app, which enables customers to make bitcoin transactions easily on the phone, track their balance and manage security preferences; and the second customer-held key is in the hardware device, securely stored offline. The hardware key serves two main purposes: an extra layer of security to co-sign money movements (based on a customer-set limit); and enables recovery when customers lose their phone.
A third key is on Bitkey’s server and is used for only two things. Firstly, to help customers move bitcoin with just their phone for the transactions they choose to make on the go without their hardware device, and secondly, to help customers recover their wallet if they lose their phone or hardware – or even both.
Importantly, because Bitkey only has access to one, not two or three keys in this 2-of-3 multi-signature wallet, Bitkey cannot access or move a customer’s bitcoin without them. This puts customers in true control of their money, while giving them peace of mind that they can recover their money if they lose something.
Additionally, Bitkey’s unique recovery tools give customers multiple ways to recover their money in case they lose their phone, their hardware device or even both, so they can take their bitcoin off the exchanges or custodial platforms and truly own it themselves without the anxiety of guarding a long complex seed phrase.
Given Block’s experience with user-friendly financial products, what design principles did you prioritize when creating Bitkey?
Thomas Templeton: Our design principles for Bitkey are:
- Trustworthy – Weight and build quality
- Smart – Intuitive hardware and app integration
- Distinctive – Stone pattern, standout from other cold wallet
- Personal – Stone pattern, unique without customization, heirloom
Speaking of the “rock/stone” hardware component which is a unique design choice. Can you walk us through the thought process behind the hexagonal shape and material selection?
Thomas Templeton: Regarding the shape, we explored lots of different shapes and silhouettes to capture this product, and eventually this is a 3D cube illusion that represents Block, and a block. Also, its hexagon shape reveals a reliable, rigid perception.
Also, Bitkey is made of stone and that makes it unique. We wanted to create something valuable while special, so we explored a wide range of materials – but we decided to choose stone because it feels more reliable and durable. Also, on Bitkey, each stone pattern is different, which means no one has the same Bitkey as you. The material choice was a big decision. With self-custody and with Bitkey, you’re holding keys and have value in your wallet.
Traditionally, hardware wallets are made of plastic and they look cheap, like a USB drive you hold a couple of files on and that you keep in a drawer. You don’t associate plastic USB drives with longevity that will hold your wealth, where a stone feels secure, lasting. Talking about wealth, finding something that lasts and is secure, will be around for a long time. When you look at them side by side, a USB stick feels like cheap technology while Bitkey feels like it will be around forever, Strong and robust.
With security being paramount in a self-custody wallet, how did you ensure the Bitkey design maintains a strong security posture while offering an appealing aesthetic and ensuring ease of use?
Thomas Templeton: Bitkey is incredibly easy to use and provides a familiar user experience, including a quick onboarding, as well as accessible recovery features. Also, the integrations with exchanges (MoonPay, Coinbase and Cash App, and more to come) that provide a seamless and secure transfer/buy bitcoin and move into self-custody; and the fingerprint sensor to unlock the hardware, which eliminates the need to worry about passwords.
User experience plays a crucial role in adoption. How did user feedback and testing shape the final design of the Bitkey app and hardware component?
Thomas Templeton: One thing we do differently at Block, and we’ve done so with Bitkey from the beginning, is thinking about the customer from the ID and user experience, and then we think backwards from there when building the products. Design is more than just pixels, it’s how something works, and it has to make sense for the people that will be using it. We tirelessly think about what the customers care about, the experience that is needed from the customer’s pain points and how we want them to use our product.
Creating a seamless experience between the mobile app and the hardware wallet is crucial. Can you discuss the design considerations for ensuring smooth interaction between these two components?
Thomas Templeton: We chose to include a fingerprint sensor to unlock the hardware and secure and confirm transactions because it offers security and ease of use at the same time, as well as peace of mind (customers don’t need to worry to remember long passwords) – and it’s something that is very recognizable in the design of the hardware piece and thought about it through the building and design process.
Also related to the interaction between the hardware and the app, and to go a bit more in-depth on recovery features, Bitkey offers a suite of recovery experiences to cover almost any scenario. If customers lose their phone (and thus the mobile key), they can regain access to their wallet using Cloud Backup, which uses their hardware device to decrypt an encrypted backup that was previously automatically stored by the Bitkey app in their cloud.
If they lose their hardware, or both the mobile key and cloud backup, they can ask Block to help recover their funds using the key stored on Block’s servers, which comes with a 7-day waiting period where a customer will receive notifications on their phone, preventing attacks as they will be able to stop a recovery process that has not been initiated by them (with the help of Block’s key).
If they lose both the phone and the hardware, their Trusted Contacts will help them regain access to their mobile key and they can then order and set up a new hardware device. And finally, if the Bikey app is no longer available, or the customer no longer wants to rely on Block or Bitkey to hold their bitcoin, an Emergency Access Kit is available for them to take their funds off Bitkey to another wallet without the involvement of Block.
The combination of these features keeps customers safe from a wide range of ways to accidentally lose their bitcoin, but without requiring customers to take a long time to set up their wallet or to safeguard a long password – that’s why we say Bitkey is bitcoin that’s easy to use and hard to lose.
Looking ahead, what are some exciting possibilities you see for the future evolution of Bitkey’s design?
Thomas Templeton: We are constantly exploring, building and looking to add features and security improvements to Bitkey. We listen to our customers and incorporate their feedback into our roadmap when possible, and we are excited for the months coming when we will have more custodial partners added for a wider customer choice, as well as new features to add value to our customers’ journey with bitcoin.
