Although there is still a lot of confusion in the world as to what Coinkite will be doing with their business moving forward, it looks like they will be fully transitioning to a hardware business model, rather than software solutions. Opendime is one of the first projects they have announced in a while, and it will serve as a way to accept and spend Bitcoin through a physical device no bigger than a regular USB drive.
The Coinkite Opendime Has Potential
It is important to keep in mind an Opendime from Coinkite will not replace a traditional Bitcoin wallet, as users looking to move funds in and out of this USB flash drive will still need a separate software or app. But at the same time, this USB disk-shaped device is an attractive option to gift Bitcoin to other users, or even selling pre-funded devices with a particular Bitcoin balance.
Coinkite wants to stress the Opendime has a lot of features under the hood, such as the private key being generated inside the device itself. As a result, no one knows the key, not even the end user. Some people might see this as a weak spot for this bitcoin wallet device, as it is rather unusual not to have the private key associated to one’s wallet.
In fact, the product page mentions how the Opendime removes the trust factor from the equation altogether, as a user can give their device to anyone without worrying the funds can be stolen. With the private keys stored on the device itself, it seems rather risky to give the Opendime to anyone else, especially if it contains one’s own funds. However, the private key can be “unsealed” making it appear to work like a physical Bitcoin coin.
Speaking of which, it is impossible to spend the funds located on an Opendime without “destroying” the device. This makes the device seem a bit expensive considering it can not be reused in the future, but it is also a vital part of Coinkite’s security model for hardware bitcoin wallets. It should be rather easy to see when an Opendime has been tampered with, after all.
It remains to be seen whether or not these disposable hardware wallets will catch on, as there does not seem to be an immediate demand for such a tool. That being said, the Opendime is is more secure than a paper wallet, simply because it is far sturdier than a slip of paper which can be damaged or lost. Paying US$25 for a three-pack of disposable Bitcoin wallets might be a rather steep price, though, considering there is shipping to pay on top of that amount as well.
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