Proton has always been a crypto company—crypto technology, not cryptocurrency. But the Swiss company, known for its secure email, VPN and storage services, has now launched its first cryptocurrency product. It's a crypto wallet called ProtonWallet that aims to make getting started with Bitcoin easier. The wallet currently only supports Bitcoin, but the company says it will add support for more currencies in the future based on user feedback.
Proton wallet is a self-custody wallet, which means users still have control over their private keys. Generally speaking, when you send cryptocurrency to another wallet, you need to use a pair of public and private keys to approve the transaction - this is what the wallet is doing behind the scenes when you click the send button.
In contrast, cryptocurrency exchanges such as Coinbase, Binance or Kraken solve this complex problem for you. They hold cryptocurrency on behalf of the user and can sign transactions without the user even knowing what the private key is.
Like MetaMask, Ledger hardware wallets, or many self-custody wallets, Proton uses a recovery phrase as a backup for private keys. For example, if you set up a Bitcoin wallet on your device through Proton and the device is lost, you can restore your Bitcoin wallet by entering the recovery phrase on another device.
It's a good backup for the security of your crypto assets because the recovery phrase is easy to write down and store in a drawer or note app. Cryptocurrency users are often targeted by phishing campaigns asking for recovery phrases (which should never be shared), so it's not perfect, but no security model is perfect.
Through this particular design, Proton has no access to its customers’ digital assets. Even if Proton is compromised or ceases operations, users can still recover their assets and transfer them to another wallet – in contrast, if a centralized exchange goes down, your crypto assets cease to exist. The company said that the Proton wallet is open source and has been audited by third-party companies.
While the wallet is currently only available to users who purchase the Proton Visionary Plan, the company plans to roll it out to all Proton users in the future. VisionaryPlan costs $39.99 per month (or $29.99 per month if you pay for a year) and gives users access to premium versions of all Proton products. ProtonWallet will be launched as a web app on iOS and Android platforms.
What makes Proton Wallet different from other cryptocurrency wallets is that it is integrated with the Proton ecosystem, which has over 100 million accounts. This means that Proton wallet users can send crypto assets to other Proton wallet users simply by entering their email address, without having to copy and paste long public keys. Proton also partners with third-party on-ramp companies (currently Banxa and Ramp) so that users can easily purchase Bitcoin using fiat currencies.
"Bitcoin's social value has been hindered by transaction difficulty and security concerns, and we designed Proton Wallet to specifically address both of these issues. Proton Wallet supports sending Bitcoin via email, which makes Bitcoin transactions as easy to use as PayPal while retaining the decentralized and non-custodial nature of Bitcoin," Proton co-founder and CEO Andy Yen said in a statement.
The Proton wallet also has an interesting privacy-focused feature: it rotates public addresses every time a user sends or receives assets from a new user. This way, you cannot use a blockchain explorer to track all past transactions related to a specific public address.
The company saw the benefits of Bitcoin back in 2014 with its first crowdfunding campaign. New customers can sign up for a premium account using PayPal as a payment method, but PayPal temporarily froze Proton's account due to the large amount of funds flowing through it. The company has opted for credit card and Bitcoin payments for the remainder of its crowdfunding campaign.
Overall, like the ProtonPass password manager, this crypto wallet from Proton doesn’t reinvent the wheel. However, it is again a solid option for those who are creating a crypto wallet for the first time. However, cryptocurrencies tend to be a polarizing topic, so let’s wait and see if ProtonWallet will damage Proton’s brand image in the future.