By Nathan Ferguson
When creating a self-custody wallet, a crypto holder has to note down a seed phrase used to recover the wallet. The wallet user risks losing all of their digital assets if it is misplaced. Crypherock, a hardware wallet firm, believes it can solve this problem and has already raised funds to build the solution.
A few days ago, Cypherock revealed that it had raised over $1 million in a seed round. Notable Investors in this round include ConsenSys Mesh, Gnosis co-founder Stefan George, Infinite Capital, OrangeDAO, and Polygon co-founder Sandeep Nailwal. The firm said that the funds would go towards marketing and product development.
Cypherock co-founder and CEO Rohan Agarwal says that the existing method of securing crypto wallets is ineffective. He notes that wallet users currently have two security issues to deal with, one, they must keep their wallets secure to prevent them from hacks, and two, users must keep their seed phrase safe.
Cypherock Aims to Provide a Solution to Seed Phrase-Related Problems
Launched in October this year, Cypherock hardware wallet utilizes four near-field communication cards to store private keys for users. Users approve transactions by tapping one of the cards into their wallets. The firm advises that wallet users keep each card in a different location.
Agarwal cites that these cards use similar secure hardware for making credit and debit cards in the banking sector. However, he says the difference is that the firm has its software written inside those cards to facilitate transactions in Web3.
Why Cypherock Hardware Wallet Could be a Gamechanger
Many consider hardware wallets (cold storage) the best way to secure crypto assets as they keep users’ private keys in an offline environment to minimize any potential online intrusions and attacks. Agarwal says that the firm’s hardware wallet is upgradeable to support new crypto, but they cannot upgrade the cards once delivered to the users.
According to the CEO, Cypherock took this step to protect users from malicious attacks. In addition, Agarwal claims that even a lousy actor within the company cannot mess with users’ wallets, therefore providing users with peace of mind.
Agarwal urges crypto investors to consider hardware wallets to avoid online scams that target crypto users. Usually, scammers ask users to give them their seed phrase or connect their wallets to an unsuspected malicious site. Agarwal says many lost funds during the bull run because of a lack of knowledge on managing seed phrases.