Why do I need a hardware solution over a software solution?
The Cypherock X1 device has chosen a hardware solution approach to protect the user from any kind of malware attacks, both for transaction and recovery. This is possible since the whole device is offline at all times. Additionally by using the cyCards, the user doesn’t need to rely on a software, paper or meta sheet, that leaves their unencrypted crucial data at a single point. Instead, the cyCards can be either stored in different geographic locations or given to people the user trusts giving him a secure mechanism for backing up the seed phrase.
Why 2-of-4 Shamir's Secret Sharing (SSS) scheme is chosen?
After extensive user feedback, 2 out of 4 SSS was found to be the most optimal for most of the users we talked with.
Why not use multisig over SSS for removing a single point of failure?
Multisig is hard to set up for the average user and is blockchain dependant. Not every blockchain has multisig support. SSS enables access distribution and gives a multisig like setup that is easy to use for general users. Users can still use multisig with their Cypherock X1 wallet.
Can I backup my other wallets using Cypherock X1?
Every software, hardware & paper wallet can be secured using Cypherock X1. Though the device can stand its own ground, it can also be used as a backup solution for user’s existing wallets.
How many wallets can I generate/backup?
Cypherock X1 allows you to store up to 3 wallets per device. Each wallet can store multiple coins.
Can the company somehow steal the digital assets of the user
It is not possible for the company to steal the digital assets of the users. You can use Cypherock X1 without internet access. The device would need to be connected to an internet connected device just for broadcasting the transaction. The private keys need not ever come in contact with an internet connected device.
What if my X1 wallet gets stolen or lost?
Your funds are safe as long as the cyCards are safe. The seed phrase is never stored on the X1 wallet. The thief would need minimum 2 cards and a password, that is set by the user, to get their hands on the funds and distribution of the secrets stored in the cyCards makes this highly improbable.
Is it necessary to set up a password associated with the wallet?
By default, Cypherock X1 has passwords enabled for each wallet. The user will have an option to not associate passwords with the wallets. The mandatory password requirement can be disable from Advanced Settings menu on the X1 wallet.
What if I lose my X1 Wallet? How can I recover my seed phrase then?
The keys are always kept securely on the cyCards. If a user misplaces their wallet, they can use their cyCard with a new device. Their data will be safe as the seed phrase is stored on the cyCard.
What can I do with cyCards?
The cyCards store your seed phrase share. With the default implementation, a user would need any 2 out of 4 cyCards to recover the seed phrase or to make a transaction.
How can I store my cyCards?
The recommended method for storing cyCards is to keep them separate at different locations or distribute them among different trusted individuals. It is recommended for the user to keep at least one share with themselves. Different storage approaches can be used based on the preference of the user.