Hive blockchain offers one of the best wallet features and security in the crypto space. Hive wallets let users create human readable account names, and offers fast and fee-less asset transfers. Every Hive wallet comes with several private keys dedicated for separate functions to provide extra security for the Hive users.
There are four separate private keys that can only be used for their dedicated functions to interact with the Hive blockchain. They are posting key, active key, memo key, and the owner key. And there is a master key that can be used for all functions. Those who prefer to use Hive security features to the fullest, always avoid using master key and keep owner key offline. And only use dedicated keys for their intended purpose.
Hive wallet and its private keys are good as they are. However, I do believe there can be some improvements made to increase security and make them even more user friendly.
Private Memo Key
I believe memo key is not used much. Its purpose is to read encrypted messages in the transfers and also to send encrypted messages with transfers. I think there is no need for a separate key for this function. Adding these functions to an Active Private Key can improve user experience.
When sending an encrypted memo one needs to use both memo key and active key. If active key could perform this function there would be no need for memo key.
Memo private is rarely used and account owners may miss or not see encrypted messages sent to them depending on how Apps handle displaying encrypted messages.
So, I would remove memo private key completely and add its functions to the active key.
Private Active Key
Active private key has many functions like transferring assets, power up and down HP, HBD conversion, place orders on the internal exchange, create new accounts, and also voting for witnesses and DHF proposals. These are too many functions for one key.
To make Hive wallet more secure I would suggest removing ability of signing transactions to power down and transfer assets from Savings to Liquid from private active key.
Powering up and keeping assets in Savings give extra protection for wallet owners. Power downs take three months, and moving assets from savings to liquid take three days. These actions are used rarely, and only when the owner needs to withdraw or use liquid funds.
Creating a new private key, let's call it Withdraw Key and letting only this key authorize power downs and transferring funds from savings can give extra layer of security and peace of mind for the owners.
This may also help with decreasing power down time in the future.
Let's say some unauthorized user gains access to private active key. Since my funds are main in HP and Savings, they wouldn't be able to transfer anything significant out of my wallet.
What if they get access to my private withdraw key? This would allow them to move my assets from savings to liquid or power down HP. But they won't be able to transfer the assets anywhere else without the private active key.
In such situation, even if the HP power down was instant, they still can't move the funds out of the wallet. But power downs don't have to be instant. Maybe lowering to a week or three days can be more reasonable. So that there is still some delay to alert the owner if there is some malicious activity is detected.
I have no skills, knowledge or ability to know how difficult it would be to implement such changes. Of course any changes to the wallet and keys should be done with careful consideration and by the blockchain wizards who fully understand how Hive works. These were just some of my thoughts that in my opinion can make the Hive wallet better.
What do you think? What would you change/improve about Hive wallet? Let me know in the comments. Also, feel free to let me know if you think these are bad ideas and why. I always interested to learn more about Hive wallet.