Jack Dorsey's Bitcoin Hardware Wallet Opts For Fingerprint Authentication Instead Of PINs Or Passwords: Here's Why

Jack Dorsey’s payments company Block Inc (NASDAQ: SQ) is working on a Bitcoin (CRYPTO: BTC) hardware wallet that will feature fingerprint authentication.

What Happened: In a blog post on March 11, Block said its upcoming Bitcoin hardware wallet will come with a fingerprint sensor to “achieve seamless authentication in practice.”

“We believe PINs, passwords, and seed phrases are confusing and often not secure given the workarounds normal people have to create given all the friction. This compounds when the need for those passwords is rarer,” stated the company.

Block acknowledged that every authentication technology comes with its own set of tradeoffs and limitations but ultimately believes this method will provide the most security.

The mobile application will serve as the primary interface for the Bitcoin wallet, which will be built without a display. The company is also taking community feedback on security considerations for the device. So far, the wallet’s proposed new features have attracted a considerable amount of criticism.

Removing the screen from a hardware wallet defeats the entire (!) point of having a hardware wallet.

If you cannot verify what the host device is sending to your hardware wallet, you cannot verify what it’s signing.

Blocks hardware wallet sounds more and more like a 2FA dongle. https://t.co/dgVZLFx0bS

— Joko � (@jokoono) March 11, 2022

Fingerprints are usernames, not passwords! @dergigi https://t.co/O0xhwPSNzO

— Cosimo de' Medici (@CGDMedici) March 11, 2022

“A user really needs to see and confirm on the secure device what it is they are approving (in a human readable way). If they can't verify this, they're exposed to attack vectors and ultimately lose the benefits of having an external device,” said Aaron Cox, co-founder of Greymass, on Twitter.

Price Action: Block shares closed 6.37% on Friday at $101.93 per share.

Photo courtesy: Block Inc