A new cryptocurrency wallet that uses Web2 tricks to ensure users don’t need to interact with seed phrases or passwords has just launched on the Apple App Store.
As announced on May 11 by Kresus, the app’s developer, the new wallet stores users’ private keys in an Amazon Web Services Hardware Security Module (HSM) and uses “magic links” and 2FA to authenticate users. .
Most cryptocurrency wallets require users to type a recovery phrase or “seed phrases” when creating a wallet. If the user loses their recovery phrase and their device is locked, they lose access to their account forever.
For this reason, some cryptocurrency users prefer to store them in an exchange account. But events like the FTX collapse have also raised fears that storing cryptocurrencies on an exchange could also be unsafe.
Speaking to Cointelegraph, the Kresus team said that their new wallet app tries to fix this problem by using a wallet infrastructure and a software development kit (SDK) called “Magic,” which stores the user’s private key on a computer. of Amazon Web Services specifically designed to store highly sensitive information.
The AWS team encrypts the user’s key with a master key that cannot leave the hardware module, much like a hardware wallet does. This eliminates the need for seed phrases or private keys to be stored on the device or backed up on paper, the team says.
Unlike a centralized exchange, Kresus does not use passwords to authenticate users, as stealing password hashes and cracking them is one of the most common techniques hackers use to access web accounts. Instead, it requires users to click a link from within an email every time they try to log in.
The app also uses 2FA to protect the account in case the user’s email address is compromised.
When sending cryptocurrency, users do not need to cut and paste crypto addresses into Kresus. Instead, the app allows each user to sign up for a free “.kresus” domain name through Unstoppable Domains, which they can use to send cryptocurrency to other people.
“We are really trying to deliver something that is truly a better mousetrap for any Web3 user,” Trevor Traina, CEO of Kresus, told Cointelegraph. “Where you can move all your stuff from multiple places to one place, which is very accessible but highly secure […] but also a gateway for people who are not yet comfortable with web3 because they are terrified of being left out.”
The Kresus team stated that due to the way the Magic infrastructure works, neither they nor the Magic development team can see the user’s private key during account creation or login, so they cannot carry out unauthorized transactions.
The Web3 application developer closed in March a financing round of USD 25 million to support the development of its so-called SuperApp.
web3 super app @Kresuofficial raised $25M in a Series A funding round led by @LCVentureswith participation from @FTI_US and JetBlue Ventures. https://t.co/ymXkN5DBAx pic.twitter.com/Cgw30Hvimo
— Crypto Fundraising #StandWithUkraine (@Crypto_Dealflow) March 7, 2023
Kresus is not the only wallet that offers seed phrase-free embed via the Magic SDK. Web3 gaming company Immutable told Cointelegraph that it is also developing a seed-phrase-free wallet called “Immutable Passport” that uses the same infrastructure. Passport will work on the Immutable X and Immutable zkEVM networks, and will be used to address players of Immutable’s Web3 games such as Gods Unchained and Guild of Guardians.
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