Better Security using Shamir Shares

Integration with Cypherock X1 that uses Shamir Secret Sharing to store keys without a single point of failure on tamper proof smartcards.

Product already has support for BTC, ETH, ERC20 tokens. It is currently in private beta with 400+ on the waitlist.

Over $4B worth of Digital Assets has been lost or stolen in 2019 alone. Even after more than a decade of Bitcoin's existence we still haven't figured out secure key management for normal users. There are three basic needs of Crypto Self custody namely Transaction, Recovery and Inheritance. Wallets today unfortunately focus only on the transaction capability but there has rarely been focus on recovery and inheritance so far. Even on the transaction side of things, every hardware wallet today has a price to hack through it. Because the wallets store the private keys in a single place, every current generation Crypto wallet is hackable. This was evident when Trezor wallet got hacked and now all of the Trezor wallets are vulnerable since it has an unfixable bug (https://cointelegraph.com/news/trezor-wallets-can-be-hacked-kraken-reveals). Coming to backing up up a wallets, users today resort to paper/metal backups which no way has the same level of security as that of hardware wallets and exposes the 24 words seed phrases (or private keys) to trust issues, hacks, thefts, fire, earthquake, eternal fear of loss etc (https://twitter.com/CypherockWallet/status/1232361926136455168). Lastly, digital assets inheritance still remains a non standardized process which most of the users today have no clue on how to handle it. The challenge is you have to safeguard your private keys while you are alive and transfer them only after you are dead which is not possible since you are the only one knowing your keys. Using a centralised service for digital assets inheritance results in loss of privacy and control of the assets which becomes too big a risk (https://twitter.com/ljxie/status/1261711895662194688).

Cypherock wallet intends to solve all of these problems by building a verticalized solution. It uses Shamir Secret Sharing and tamper proof hardware to solve these issues. It is like a personal Fort Knox for Digital Assets Security. There are 2 main components to the Cypherock X1 Hardware solution - the X1 wallet, 4 cyCards (EAL 6+ certified secure elements).

If you want to backup any Digital assets, enter your digital asset into the X1 wallet and set a PIN. Using Shamir Secret Sharing, the information is sharded into 4 parts which are stored in each of the 4 cyCards which you can distribute in geographical locations. In case, you need to recover your private keys, you just need to fetch any 2 out of 4 cards. This whole process provides security similar to multisig for their seed phrases. Demo - https://www.youtube.com/watch?v=eD3CZMPumCk

Because the private keys as a whole is never permanently stored anywhere, the hacker needs to compromise locations of atleast 2 cyCards and the PIN to hack through the funds preventing single point of failure on any one hardware component. Users can also make Blockchain transactions without a single point of failure using the Desktop app & Cypherock X1. Demo - https://www.youtube.com/watch?v=YPKGh3y8s7o

Using the Cypherock wallet, we are also offering a digital asset inheritance service that will enable its inheritance without compromising the privacy and the control of the assets itself giving users complete peace of mind for their digital assets.

Through this grant, we intend to support ADA token on the product majorly supporting the transaction signing on the embedded HSM and transaction construction through the cySync Desktop app along with the seed phrase backup and inheritance service product.