The Coinbase Wallet has announced back up of their private keys on Google Drive or iCloud for its users on Feb 12.
The Coinbase has stated in its official statement that the user will have provision to safeguard their keys while uploading their keys to a cloud and will help them avoid any loss of funds if the keys get misplaced. It further stated that the funds on the blockchain can be accessed through the user mobile device which generates the private keys. Mostly owners lose their funds forever if they fail to back up their recovery phrase of 12 words or if they lose their devices.
An encrypted copy of the recovery phrase can be stored by the Coinbase users on their cloud accounts. The user’s funds cannot be accessed by either the Coinbase or the cloud services as only the user will be provided with the key to unlock the password to access the fund. AES-256-GCM encryption is used for the backup which can be accessed only through Wallet mobile app
The Coinbase also looks forward to providing support for other clouds in future along with Google Drive and iCloud. The feature will not replace the original recovery options as it is opt-in.
The Coinbae move is a relief for the crypto users after the bizarre case of cryptocurrency exchange QuadrigaCx losing approximately 103 bitcoins by accidentally transferring it in cold wallet of its late founder Gerald Cotten, who was said to be the sole executive of the exchange keys and the cold wallets.
As of now the audit firm Big Four which is named as the observer of the QuadrigaCx proceedings of creditor protection, was able to recover electronic devices and encrypted USB keys used by Cotten, reported by Ernst & Young