{"id":34790,"date":"2023-07-12T17:55:18","date_gmt":"2023-07-12T21:55:18","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/new-tool-allows-bitcoin-holders-to-store-private-keys-as-colors\/"},"modified":"2023-07-12T17:55:20","modified_gmt":"2023-07-12T21:55:20","slug":"new-tool-allows-bitcoin-holders-to-store-private-keys-as-colors","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=34790","title":{"rendered":"New Tool Allows Bitcoin Holders to Store Private Keys as Colors"},"content":{"rendered":"
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One of the challenges crypto investors face is the issue of asset loss. Sometimes, scammers steal users\u2019 assets when they access their private keys.\u00a0<\/p>\n

Other times, the government can seize an investor’s crypto assets when flagging them for illegal transactions or other cases unrelated to crypto.\u00a0<\/p>\n

But all these issues are about to change with an introduction of a new Bitcoin tool. Users no longer need to use word and alphanumeric characters as private keys.\u00a0<\/p>\n

They can now store their coins in a rainbow, making it hard for third parties to access them.\u00a0<\/p>\n

Bitcoin New Tool Creates a Rainbow Storage\u00a0<\/h2>\n

Last month, a Bitcoin Developer, Entero Positivo, launched a tool<\/u> called \u201cBIP39Colors\u201d. The open-source tool converts a user’s BIP39 mnemonic phrase into diverse colors.\u00a0<\/p>\n

The developer provided instructions<\/u> on how users can use a calculator to decode their BIP39 colors back to their mnemonic phrase.\u00a0<\/p>\n

According to Positivo\u2019s explanation to an online news site Decrypt through a direct message saying, with this method, you can convert your 12-word phrase to 8 colors (or your 24-word phrase to 16 colors), then you can convert your colors back to your original seed.<\/p>\n

In a Positivo Twitter post<\/u><\/a> on June 25, the developer outlined the entire functions of the tool and how users can utilize it.\u00a0<\/p>\n

Notably, Positivo also stated that only Python and Javascript libraries were available at that time. However, the manual method will soon become available, so anyone can carry out both conversions using their calculator. You will indeed not depend on any tool to recover your original mnemonic.<\/p>\n

BIP39 mnemonic phrase Is Obvious to Hackers\u00a0<\/h2>\n

Before now, crypto investors utilize the BIP39 standard to generate their seed phrase, usually 12 to 24 words.\u00a0<\/p>\n

This phrase gives the investor access to their Bitcoin Wallet. Notably, the mnemonic phrase was created to enable users quickly recover their assets if they lose their wallet device.\u00a0<\/p>\n

Also, many wallet providers usually suggest writing down the 12 key phrases on paper as a backup, ensuring that no one else sees it.\u00a0<\/p>\n

But according to Positivo, the practice of storing the key phrase on a paper is very obvious to bad actors that see it.\u00a0<\/p>\n

As such, he suggests using the new tool, which will store the key phrase as a color saying, a paper with 12 words is more suspicious than a color palette labeled like ‘my new home wall colors,’ for example, or inside a styles.css of your website.<\/p>\n

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He further suggested, you can give one color to your mother, another inside your [website], another written in a web design book… and recover your seed from these agnostic colors in the future.<\/p>\n<\/blockquote><\/div>\n