A new solution has arrived in the crypto hardware wallet sector from Cypherock to eliminate the need to memorize the seed phrase. After a $1 million fundraiser, the startup is ready to use NFC-based crypto cards for this purpose.
Crypto hardware wallet and the new solution by Cypherock
All crypto hardware wallets require users to memorize the ‘seed phrase’ that can be used to recover the cryptocurrency wallet.
This is not always successful in the sense that if the user were to lose or forget or, even worse, be robbed of that phrase, they would lose, along with the wallet, all the crypto in their possession.
Crypto hardware wallet startup Cypherock has come up with a new solution, which would replace that process with the use of NFC-based crypto cards.
— Decrypt (@decryptmedia) December 21, 2022
Basically, the Cypherock X1 crypto hardware wallet, launched in October 2022, uses four encrypted cards with near-field communication (NFC) to store users’ private keys and the seed phrase. Tapping any of the cards to the wallet approves a transaction, and Cypherock advises users to store each in a different geographic location.
Cypherock’s $1 million fundraiser
In addition to that, Cypherock also said it has raised $1 million in a startup round just for this innovation in the industry.
Investors include the likes of ConsenSys Mesh, Infinite Capital, Gnosis and its co-founder Stefan George, Polygon co-founder Sandeep Nailwal, Mahin Gupta, OrangeDAO, and others.
The new NFC-based cards would thus be the ideal solution for users who like to enjoy the feeling of ownership of their cryptocurrencies, albeit at the risk of losing them without the possibility of “password” recovery.
In this regard, Rohan Agarwal, co-founder and CEO of Cypherock said:
“These cards use the same secure hardware used in the banking industry for making debit cards and credit cards. So using the same secure hardware, but our own software that is written inside these cards, we take that secure infrastructure and port it to Web3.”
In addition, Agarwal confirms that the Cypherock X1 can only be upgraded to support new cryptocurrencies, without upgrading the NFC cards. In essence, the user is protected from malicious attacks either by a third party or even a malicious startup employee.
Crypto hardware wallets following the collapse of the FTX exchange
Crypto hardware wallets have been around for a long time, yet many users prefer to use online wallet versions or crypto exchanges to hold their cryptocurrencies.
This happens probably because of the ease of use or, indeed, to avoid having to memorize seed phrases at the risk of losing all their assets.
Yet, the collapse of the FTX crypto-exchange was an episode that once again confirmed the high risk of delegating ownership over one’s assets to a centralized entity.
In this regard, hardware wallets, also known as cold storage, are considered the best option to protect Bitcoin and other cryptocurrencies. A hardware wallet stores users’ private keys in a secure offline environment, safe from potential online attacks and intrusions.
The evolution of Ledger: the most popular hardware wallet
Those who are part of the crypto industry surely have heard of Ledger devices such as the Nano S, Nano S Plus, Nano X to the newly launched Ledger Stax.
This is a piece of history that shows that crypto hardware wallets also evolve, aiming to simplify the use of such devices while sticking to the general rule that the user should memorize seed phrases.
And in fact, starting in 2014, when Ledger’s first crypto hardware wallets began production, the French company has continued to maintain its leadership by becoming known for offering security.
In 2022 alone, it appears that the number of sales of such crypto hardware wallets has reached 5 million.
The French company’s latest model, the Ledger Stax, has also opened its doors to NFTs, continuing to use EAL 5+ certified security elements.
Indeed, for its early December launch, Ledger raffled off two NFT Art for users who pre-ordered the new hardware crypto wallet.
The Ledger Stax was designed by Tony Fadell, the celebrated American engineer creator of the iPod and former vice president of Apple’s iPod division.
Ledger and the collaboration with Binance
Another peculiarity of Ledger is also its Ledger Live app, which is used by users to configure their wallets so as to achieve a simpler and more convenient interface.
Ledger Live has partnered with the most popular crypto exchange on the web, Binance. Basically, Ledger’s app integrates a new feature that allows Binance users to be able to buy more than 80 cryptos on Ledger Live in just a few clicks.
In general, Binance’s goal seems to have been to increase the number of users buying crypto from their platform, but through Ledger Live, which makes everything much more secure.