.bit’s New Tool, .bit Alias, Offers Safer Crypto Asset Transfers

The open-source Web3 identity provider, .bit, has developed a new tool, .bit Alias, to reduce the risks of sending assets using mainstream crypto wallets and exchanges. The company recently warned users about the risks surrounding the usage of decentralized identifiers (DIDs) for crypto asset transactions. The new tool enhances the security and user-friendliness of Web3, providing a decentralized identifier that is compatible with multiple chains and supports various asymmetric encryption algorithms for signature verification.

What is .bit Alias and how does it work?

The .bit Alias feature converts complex blockchain addresses into simpler and more readable .bit accounts, making it more convenient to use. Users can set a .bit Alias for an address on any chain, triggering double verification when transferring funds. This feature helps avoid risks such as hacker attacks, internal manipulation, program errors, outdated data, and expired DIDs, ensuring the security of transfers.

The process of using .bit Alias is similar to fiat currency transfers in the traditional world banking system. The asset receiver provides the address and the corresponding .bit Alias to the sender. The wallet or exchange then initiates a .bit Alias Lookup request to the application programming interface (API) service. Once the result is found, the user is prompted to complete the alias of the receiving address. The wallet or exchange compares the filled-in content with the result of the query, and the user can only complete the transfer if the two exactly match. For transfers of small amounts, the wallet or exchange can prompt the user to confirm the name of the alias of the receiving address is correct.

Recommendations for users

Upon recognizing and studying the risks associated with DID usage, .bit recommends that wallets or exchanges disable the function of directly sending or exchanging assets using DIDs. Users should use .bit Alias for more secure asset sending or exchanging, and asset recipients should set a .bit Alias for their own address and provide both the blockchain address and the corresponding .bit Alias to the sender when receiving the asset. Asset senders should avoid direct assets transfers using DIDs and use a wallet or exchange that has upgraded its security level for its users’ assets.

TL;DR:

.bit, an open-source Web3 identity provider, has developed a new tool, .bit Alias, to reduce risks when sending crypto assets. The feature converts complex blockchain addresses into simpler and more readable .bit accounts, triggering double verification when transferring funds, ensuring the security of transfers. .bit recommends that wallets or exchanges disable the function of directly sending or exchanging assets using DIDs, and users should use .bit Alias instead. Asset recipients should set a .bit Alias for their own address and provide both the blockchain address and the corresponding .bit Alias to the sender. Asset senders should avoid direct assets transfers using DIDs and use a wallet or exchange that has upgraded its security level for its users’ assets.