A hardware wallet, Cypherock, has raised $1 million to develop its wallet further to manage the risk related to seed phrase. The company revealed that its investors include ConsenSys Mesh, Infinite Capital, and Gnosis. Its co-founders are Stefan George, Polygon co-founder Sandeep Nailwal, Mahin Gupta, and OrangeDAO, amongst others.
Cypherock is a company that develops security storage products designed for blockchain-based digital assets and private keys. The Singaporean firm was launched in 2019 by Rohan Agarwal and Vipul Saini. The use of hardware wallets is becoming more popular as it presents one reliable way to secure crypto assets via self-custody.
Hardware wallets are storage systems for cryptocurrencies and other digital assets. They are different from software wallets, which are also storage solutions for crypto. Hardware wallets, unlike software wallets, store digital assets in an offline mode or a cold system. Most hardware wallets appear as USB sticks and can be activated when connected to the internet.
One of the major challenges users face when carrying out self-custody of their assets is the potential loss of seed phrases. Seed phrases are a series of words randomly created by a wallet that a user needs to save by writing it out or any other means that’s safe to access their wallets.
But once the seed phrase is lost, it’s almost impossible to get the assets back. Cypherock believes it can solve this problem of losing seed phrases with its solution.
Cypherock wallet Solution
Cypherock X1 hardware wallet, released in October 2022, was designed to function with four encrypted near-field communication (NFC) cards. NFCs are communication systems designed to enable devices to exchange information via connections like Bluetooth and WiFi.
With the NFC cards of the Cypherock hardware wallet, users don’t have to memorize or write their private keys in unsafe materials like paper. Rather, the card stores the private keys and when tapped on, the wallet approves any transaction initiated by the user.
Explaining the workings of the card, Agarwal said that the card functions like the credit and debit cards used every day. The difference is that they designed the software used in the card and brought the technology into the Web3/blockchain ecosystem.
Furthermore, he noted that while the Cypherock X1 hardware wallet can undergo an upgrade to allow new cryptocurrencies added to it, once shipped to users, the card itself cannot be upgraded. Cypherock took this decision for the safety of users, even as the company does not have access to make changes on the card after delivery.
The company also said that there are plans to have an iOS and Android app that can replace the card.
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