Bitcoin Terminal - Zonda PayLatest release: 1.6.9(55) ( 21st December 2021 ) 🔍 Last analysed 11th April 2022 . Custodial: The provider holds the keys
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Do your own research!
Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.
The Analysis ¶
Bitcoin Terminal - Zonda Pay is a Point of Sale system that accepts cryptocurrencies. Zonda used to be BitBay.
- Ability to process numerous digital currencies, including: Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Bitcoin Gold, Ripple and more with a single mobile Point of Sale app
- Automated cryptocurrency to FIAT exchange
- Type in the amount of Euro (EUR) you’d like to receive,
- Set the customer’s currency of choice (e.g. Bitcoin) in just 2 clicks,
- Confirm - the Point of Sale will generate a unique QR code for your transaction,
- The customer then scans the code with their phone camera and confirms,
- The funds should be added to your account in no time.
It mentions in the help section that cryptocurrency deposits and withdrawals can be made. This is available on the web application accessible via their web form. However, we were not able to test this on the app itself as we kept getting QR code errors. Assuming the documentation is accurate, the ability to pay using the Zonda Pay PoS app using cryptocurrencies, and the ability to receive the same also qualifies this PoS app as a wallet. Its centralized nature, with no evidence for private key backup and restore make this service custodial.
As the provider of this product holds the keys, verifiability of the product is not relevant to the security of the funds!
As part of our Methodology, we ask:
Is the product self-custodial?If the answer is "no", we mark it as "Custodial: The provider holds the keys".
A custodial service is a service where the funds are held by a third party like the provider. The custodial service can at any point steal all the funds of all the users at their discretion. Our investigations stop there.
Some services might claim their setup is super secure, that they don’t actually have access to the funds, or that the access is shared between multiple parties. For our evaluation of it being a wallet, these details are irrelevant. They might be a trustworthy Bitcoin bank and they might be a better fit for certain users than being your own bank but our investigation still stops there as we are only interested in wallets.
Products that claim to be non-custodial but feature custodial accounts without very clearly marking those as custodial are also considered “custodial” as a whole to avoid misguiding users that follow our assessment.
This verdict means that the provider might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has control over the funds, so it is not a wallet where you would be in exclusive control of your funds.
We have to acknowledge that a huge majority of Bitcoiners are currently using custodial Bitcoin banks. If you do, please:
- Do your own research if the provider is trust-worthy!
- Check if you know at least enough about them so you can sue them when you have to!
- Check if the provider is under a jurisdiction that will allow them to release your funds when you need them?
- Check if the provider is taking security measures proportional to the amount of funds secured? If they have a million users and don’t use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems.
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