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The Banker

Updated: 19 hours ago

Fortifying Traditional Banking Systems with Splitcoin


Introduction


In the age of digital currency, the lines between traditional banking and cryptocurrency often seem blurred. However, for those who value the solid foundations of brick and mortar banking and wish to integrate it with the digital security of cryptocurrency, the Banker strategy provides a perfect blend of both worlds.



The Core Values of a Banker


A Banker, in the traditional sense, values high-security infrastructure. They have an inherent trust in the established banking systems, and it’s the tangible security of a physical bank that gives them peace of mind. This trust isn’t unfounded: banks have robust security measures that have been refined over centuries. In our digital age, there’s still something reassuring about a vault’s heavy door and the guarded safety deposit boxes.


What Is Needed


Below is everything you will need to follow this storage strategy:

  • 1 pack of Splitcoins

  • 1 smartphone with the Splitcoin app

  • 2-8 safety deposit boxes at various banks

  • 1 home safe

  • 1 pen

  • 1 magnet vault (Included with your pack of Splitcoins)


Using Banks And Safes


Safety Deposit Boxes: With the Banker strategy, the Splitcoins are distributed across several safety deposit boxes in various banks. Each bank becomes a holder of a portion of your total Splitcoins. By doing this, you're leveraging the physical security of multiple banks and reducing the risk associated with any single institution.


Home Safe: A secured home safe becomes the sanctuary for your encrypted seed phrase. Safes, especially those embedded into the foundation of a property, offer unparalleled security against theft. In combination with the distributed Splitcoins, this creates a multi-tiered approach to security.


The Password: The final piece of the puzzle, the password, can be stored in a home safe. It’s the key that binds everything together.


Implementing the Blacksmith Strategy with Splitcoin


Getting Started

Prerequisite: Before you get started with implementing the Banker strategy, you should make sure you have read the blog post Getting Started with Storage. It covers the basics of storage schemes and a high level view of how Splitcoin works when it comes to storage.


Step 1: Run the Create Vault Process

If you made it this far, then you probably already completed this step! Now you should have a set of Splitcoins, a password, and a seed vault (your encrypted seed phrase) to manage. Follow the rest of these steps to implement The Banker strategy.


Step 2: Store Your Splitcoin In Safety Deposit Boxes

Utilize the acrylic Splitcoins. Store them in safety deposit boxes across various banks. Using different banks reduces the risk of any bad actor at a single bank somehow gaining access to your entire coin set. You want to make sure your coins are well distributed.


Step 3: Store the Seed Vault (Encrypted Seed Phrase)

This is the vault for your digital assets. The Banker strategy suggests writing this down on the provided magnet vault. These mediums are durable and immune to all tech malfunctions. Place it in a secure home vault.


Step 4: Safekeeping the Password

As the final piece of the puzzle, your password deserves special attention. While some might choose password management software, those leaning toward the traditional can write it down on their password magnet. Hide it in a place that is secure such as your home vault or a safety deposit box.

Optional: If you plan on keeping your encrypted seed phrase hidden in a home vault, you can store your password in your home vault as well. The password does not allow someone to decrypt your encrypted seed phrase by itself. All of your Splitcoins would still be needed to do this.


Step 5: Make a Backup

Having a backup is essential in the unfortunate situation that something happens to one or more of your coins. Create backup set using acrylic Splitcoins, Splitcoin Tags, or QR codes. You can mix and match them. Splitcoin Tools, which are found on the Home tab of the Splitcoin app, can be used to do this easily. Use the Copy Tool to make copies of your coins using NFC. Use the Export To QR tool if you would like to make QR versions of your coins, which can be printed. You can also use the Export Codebook To PDF tool to store your codebook as a single digital file or to print it out. Consider implementing a secondary strategy for your backup set.


Strengths of the Banker Strategy


1. Robust Physical Security: Distributing Splitcoins across multiple banks ensures that even if one bank faces a crisis, others are still intact. The strong physical defenses of these banks act as a formidable barrier against theft or unauthorized access.


2. Decentralization Within Centralization: By placing Splitcoins in various banks, you’re decentralizing your security within a centralized system. This ingenious blend offers a fresh take on the principles of cryptocurrency, adapted for traditional banking security.


3. Mitigating Risks: In case a crisis hits one banking institution, while you'd need access to all Splitcoins for recovery, other banks can still provide a partial safeguard. However, it's crucial to understand that the loss of even one Splitcoin compromises the entire system. Thus, regular checks, renewals, and ensuring consistent access to all safety deposit boxes is vital.


4. Home Vault as the Core: The home vault acts as the heart of this strategy. It holds the encrypted seed phrase. The combination of an ultra-secure home vault with distributed Splitcoins forms a formidable defense against both physical and digital threats.


Conclusion


While every strategy has its advantages and challenges, the Banker strategy is particularly suited for those who trust the age-old banking systems but wish to harness it for modern-day cryptocurrency protection. It’s a strategy that melds the old and new, traditional and modern, physical and digital. In a world that’s rapidly changing, sometimes the best way forward is to combine the strengths of both worlds, ensuring your cryptocurrency assets are as secure as possible. Remember, in the intricate dance of crypto security, every step matters, and with the Banker strategy, you take those steps on a foundation of proven security infrastructure.

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