OKX Review: Is It Worth It?

• The private key management system integrates decentralized storage
• Each private key has a backup.
• OKX has many emergency scenarios that allow them to enable backups.
• It keeps private keys in its semi-offline signature devices’ RAM, preventing both online and offline attacks.
• It has multiple risk detection and management mechanisms to prevent suspicious assets flows.

Benefits of the security protocol

• OKX's security systems are designed to keep private keys safe against both online and offline attacks.
• OKX's extensive backup and contingency plans aim to minimize withdrawal downtime due to emergencies and unforeseeable circumstances.
• OKX's risk management systems flag and prevent suspicious deposits and withdrawals.

Secure offline storage design

Cryptocurrencies are innovative digital assets. They’re a great way to participate in trustless financial ecosystems. However, asset security that’s based on cryptographic functions and data protection is one of the major challenges for the industry.

Cryptography leverages extensively tested and widely accepted encryption standards (SHA-256 hash and ECDSA encryption). But data security, including private keys and passwords, remains the weakest link. Offline asset storage, also known as cold wallet systems, (not connected to the internet at all) are designed to counter these concerns.

How does OKX's cold wallet system work?

The security program encompasses all aspects: platform, assets, data, and access security. OKX is transparent and public with its protocols that guarantee the complete protection of funds on OKX. Multiple backups, bank vaults, and storage limits are only some of the measures taken.

Anything connected to the internet is inherently vulnerable. That’s why OKX keeps 95% of all funds on its offline, cold wallet system.

Even offline USB drives aren’t entirely safe from viruses and malware. That’s the reason why OKX's cold wallet system doesn’t interact with USBs and external memory devices.

A single point of failure is a critical threat. Access to OKX's cold wallet system requires confirmation from at least two authorized personnel.

Unexpected and unforeseeable events may happen. OKX's architecture offers protection by incorporating contingency plans, including the use of multiple backups.

Security threats to authorized employees can alter any system. As a countermeasure, OKX stores sensitive data in secure bank vaults requiring in-person access.

Core features of the security protocol

• Each cold wallet address can store no more than 1,000 BTC.
• OKX private keys never interact with the internet or USBs.
• OKX private key backups are stored in secure bank vaults.
• Access to decryption passwords and key backups is divided among four authorized employees.
• Any cold wallet is no longer used for deposits after the first withdrawal occurs.
• Employees who have access to passwords and backups live in different locations.
• Private keys are moved online only once and never used again after.

Benefits of the security protocol

• All assets in cold storage are spread across multiple addresses, with no single point of failure.
• Access to cold wallets requires at least two authorized employees, preventing hacks and malware attacks.
• Backups are stored in geographically different locations, providing additional security for potential unforeseeable scenarios.
• Key retrieval from bank vaults requires in-person access, bypassing scenarios where authorized employees may be compromised.
• Only one withdrawal per cold wallet address is possible, which reduces unauthorized access risks.