As Samsung Electronics has revealed that it installed an application called “Samsung Blockchain KeyStore” on its upcoming Galaxy S10, opinions differ as to whether this can be a cryptocurrency wallet. Yet industry watchers in Korea say in unison that the app “will serve as a stepping stone to create an ecosystem for crypto transactions in the long run.”

In the 2019 Unpacked event held in San Francisco Wednesday, Samsung Electronics unveiled the “Samsung Blockchain KeyStore.” According to Samsung Electronics, KeyStore will play the role of storing private keys for blockchain-enabled mobile services on Knox, Samsung’s mobile security platform.

According to the review video of the Galaxy S10 made by “KoyecoupleTV,” a local IT tech reviewer, Samsung’s Blockchain KeyStore service provides a private key storage and such functions as transactions and contract signing. It also has a menu that makes it possible to bring existing wallets and make new wallets.

A demonstration video released by another YouTuber K JO shows that the application will encompass both blockchain transactions and services. The video shows on its monitor that “S10 is the most secure smartphone in conducting blockchain transactions and services.” It also states that “S10 stores private keys for blockchain safely,” emphasizing that blockchain can be used in shopping malls, insurance, banks and gaming.

A video demonstrating the cryptowallet sample/ courtesy of YouTuber K JO

Many watchers here view the KeyStore application as a cryptocurrency wallet that strengthened the cold wallet function. An industry analyst, who asked not to be identified, said, “It is not an app just for the sake of key storage. It would be reasonable to think that Samsung released a cryptocurrency wallet that strengthened the cold wallet function as a hardware manufacturer.”

Samsung’s latest overture might prompt crypto startups to collaborate with large companies. Choi In-wook, CEO of Bitberry, a cryptowallet service provider, expressed confidence that Samsung’s KeyStore release will serve the purpose of bringing users and blockchain closer, stating that cryptowallet service providers and security solution firms will stand a good chance of seeking cooperation with Samsung. He said KeyStore would not help invigorate cryptocurrency or token economy-related services itself. “Nonetheless, collaboration is essential because there must be services enabling the keys like Samsung Pay could succeed thanks to credit card terminals.”

Some argue that Samsung has already formed partnerships with several companies. An industry insider who asked not to be named said, “I am aware that Samsung concluded contracts with a few cryptocurrency startups,” adding that Samsung won’t produce and provide DApps. “Rather, Samsung would emerge as an integrated platform more easily if it teams up with some DApp firms.”

There are some concerns though. An official at a cryptowallet company said, “Samsung’s move to lead the blockchain ecosystem is certainly a good sign. However, the problem that private keys are lost together if the handset is lost remains unsolved.” Yet another industry insider downplayed these concerns, stating that “Samsung must be contemplating ways to restore private keys like the lost hard wallet can be restored with 24 words.” “Anyway, Samsung’s KeyStore release will count for much in popularizing cryptocurrency.” /yjk@decenter.kr

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