Cypherock announced this week that it has raised $1 million in a seed round from investors including ConsenSys Mesh, Infinite Capital, Stefan George of Gnosis, Sandeep Nailwal of Polygon, Mahin Gupta, OrangeDAO and others, exclusive to Decrypt.
What Does Cypherock Promise?
When installing a self-custody crypto wallet, users are asked to record and store a seed phrase that can be used to recover the wallet. However, if this phrase is misremembered, later on, customers are in danger of losing all their cryptocurrency holdings. Worse still, someone could take a photo of the seed phrase you wrote and share it with the world.
On the other hand, Cypherock, a hardware wallet startup, thinks it has found a solution to this potentially dangerous situation. In this direction, the company has raised a seed fund.
The Startup’s Solution
Launched in October 2022, the Cypherock X1 hardware wallet stores customers’ private keys and seed phrase on four encrypted near-field communication (NFC) cards. A transaction can be confirmed by tapping any of the cards on the wallet. However, Cypherock advises its users to store each card in a separate area.
It is believed that the best method for protecting Bitcoin and other cryptocurrencies is hardware wallets, sometimes also called cold storage. A hardware wallet protects users’ private keys from online attacks and intrusions by securely storing them offline. Basically, it offers this advantage to its users.
On the other hand, it has arranged the cards in such a way that they cannot be upgraded or modified after they are distributed to users. However, Cypherock X1 can only be updated to support new cryptocurrencies. The company has adopted this policy to protect its customers from malicious attacks and to reassure them that even a possible bad actor working for Cypherock will not be able to access their money.
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