A New Standard For Crypto Security

Rohan Agarwal
Rohan Agarwal
6 min read
A New Standard For Crypto Security

2020. Never had we thought that this would be the year of the next financial crisis after 2008. But there is a subtle difference this time. The bad part is this one is even worse than the previous one due to the Pandemic, but the good part is we have an exit plan possible in the form of Cryptocurrencies.

The Cryptocurrency Industry was born in the last financial crisis to set precedence for this one. Yet even after more than 10 years, almost $4 Billion worth of Crypto Assets have been lost or stolen in 2019 alone.

We believe, there exist 3 fundamental problems in Crypto security today -

  • Every Current Generation Wallet is Physically Hackable — Current Wallets store your private keys in a single place that can be stolen with the right resources.

  • Recovery Sheets Exposes Your Crypto to Hacks & Thefts — Your seed phrases on the paper expose your crypto in plain sight and may result in trust issues, hacks, thefts, fire, earthquake, eternal fear of loss and so on.

  • Inheritance Problem With Crypto Today — You have to safeguard your Crypto while you are alive and only transfer them after you are gone which is impossible if you are the only one knowing your keys while maintaining privacy and control.

In order for Crypto to get mass adopted, Crypto Storage needs to Safe, Secure & Easy.

Introducing Cypherock X1

Cypherock X1 is the World’s first device that allows you to securely store private keys without a single point of failure. It is a first of its kind key security device that offers decoupled storage of private keys separate from the computation device. It has two components -

  • X1 Vault
  • X1 Cards

3 Layers Of Security

Security was always the first guiding principle when we started building at Cypherock. Cypherock X1’s security can be classified into 3 layers:

  • Layer 1 — Shamir’s Secret Sharing allows recovery of the Private Keys from any M out of N cards where 2 < M < N. It protects against a single point of failure. It is used by Coinbase & Winklevoss Brothers to Secure Their Own Assets.

  • Layer 2 — PIN Protection on top of each Card guards each secret to prevent guardians colluding against the user & exposure of Private Keys in plain sight.

  • Layer 3 — Decentralised distribution through physical separation of cards protects against environment damages and solves $5 Wrench Attacks.

Features

  • Multi-layered Protection & Secure Hardware Provides Better Security Than All of the Current Hardware Wallets.

  • Decoupled Architecture Allows Code to Be Open-Sourced & Protect Against Physical Attacks Simultaneously.

  • Ability to Secure Multiple Wallets in One Hardware Makes Backing Them Up & Making Transactions from Different Wallets Hassle-Free.

  • Offline & Internet-Independent Functioning allows Full Privacy.

  • Decentralized Cryptography Allows Off-Chain Computation which Gives Users The Control of Their Assets.

  1. Use It For Ultimate HODLing

Unlike other hardware wallets that store the private keys on the device itself, the private keys are never stored on the X1 wallet and never in a single place, which makes it more secure than a regular hardware wallet when it comes to making blockchain transactions. The private keys are generated completely offline and then broken into 5 unique secrets, each of which is encrypted and stored on the X1 wallet and the 4 X1 cards.

To make a transaction, you just need to fetch and tap any 1 out of the 4 X1 cards on the X1 wallet. This enables Cypherock X1 to offer security similar to that of offline multisig for all the Blockchains without the added complexity of multi-sig wallets.

[Demo]

Many users compromise with security due to multisig being complex. Source:

@phil_geiger

Why Use It Over Other Wallets?

  • Every Hardware Wallet is Physically Hackable with the Right Resources (Eg- Trezor Hack). Cypherock X1 solves this problem by never storing the Blockchain private keys in a single place.

  • Cypherock X1 offers off-chain multisig like transactions for all the coins. Unlike complex on-chain multisig wallets, it is easy to use, supports every Blockchain, and has a standard implementation for all the Blockchains. Since the process is off-chain, it can itself be used in a multisig setting if need be.

  • Unlike other hardware wallets where you get one wallet per hardware, you can create 3 different wallets in a single Cypherock X1. Hence, you can make transactions through up to 3 different wallets in a single device.

  1. Use It As Ultimate Wallet Backup

Cypherock X1 lets you store your seed phrases offline in tamper-resistant hardware without a single point of failure, which is a first of its kind. Instead of writing your seed phrase on a piece of paper, you can use Cypherock X1 to break it down into 5 unique secrets, each of which is encrypted and stored on the EAL 6+ secure elements on the 4 X1 cards and the X1 wallet. No one will be able to access the encrypted secrets even if the card is stolen unless you tell them the PIN. To restore your seed phrase, you just need to fetch and tap any 1 out of the 4 X1 Card on the X1 wallet and enter the PIN. This enables Cypherock X1 to offer protection against private key loss and theft that is fairly common in other solutions.

[Demo]

Seed phrase security still lacks peace of mind. Source:

@cypherock

Why Use It Over Other Backup Solutions?

  • Cypherock X1 can be operated using any power source. Because backing up a wallet is not dependent on an internet network, you can secure and recover your seed phrase using any power source.

  • Due to the tangible nature of the X1 cards, you can either give the card to someone to protect it for you or keep it in a safe place. Even if a guardian or a group of guardians come together and try to comprise the private keys, it is almost impossible to steal your assets without your PIN.

  • Cypherock X1 is compatible with every type of wallet be it a hardware, software, or an online wallet. Cypherock X1 is an HD BIP-39 compatible wallet that supports 12/24 words mnemonic phrases.

  • Cypherock X1 allows backing up to 3 wallets in single hardware with the same level of security for all the wallets.

Conclusion

We want the wallet users like yourself to have the same peace of mind and confidence in holding their Crypto that they have with their fiat savings in the bank vaults. For more info about the device security, check out our Security page

cypherock.com/security.

Since you have come all the way through to the end, we will let you in on a secret. Cypherock is coming up with a beneficiary service that will enable you to transfer your crypto assets without completely relying on a third party and Cypherock X1 owners will get its first 6-month subscription absolutely free! More on this soon.

Pre-Order the device now @ cypherock.com and get it just for $199. We are taking utmost care in ensuring that you are satisfied with the product when it is delivered to you, so if you pre-order the device now and are not satisfied with the product upon delivery then we have a no-questions-asked return policy.

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