Cypherock

All right. GM, GA, GE everybody. Welcome to what's going to be another great DevNTell. So if you didn't know, DevNTell is a 30 minute window for members of the DAO to showcase something they're passionate about or been working on. This can be an awesome project you've been working on, demonstrating you testing best practices, automation goodies, smart contracts, how to structure a project, etc. Basically if you've got a passion for something, this is your opportunity to share with the community. And today I am happy to introduce to you Naman, who will be sharing with us this project, Cypherock. Take it away, Naman.

Thanks a lot Narb. Hey guys, hello everyone. So let me start off with my introduction. So I have been active in the crypto space since 2017. So it's been around five years now. I started working as a community manager and then built my way up by helping projects with their marketing strategies and token metrics. Currently I am leading my BD at Cypherock. I'm leading BD at Cypherock where we are building the world's first hardware wallet without a seed phrase. Cypherock is backed by notable investors like Consensus, Infinite Capital, OrangeDAO, etc.

Sure, let me just share my screen and please let me know if you can see my screen. Yes, we can see now. Let's start. Yep. Okay. So about Cypherock. As I told you, Cypherock is the world's first hardware wallet without the seed phrase, but why no seed phrase?

We believe seed phrases are the biggest limitation factors that's stopping crypto from going mainstream right now. And why do I say so? There are over 200 million seed phrases lying around in plain text ready to be stolen or worse, lost. We have recently seen an example where Nevada police officer accidentally exposed seed phrase of a customer, of a user, where his Ledger seed phrases were lost. Other than that, there's Ledger and Trezor which are the market leaders. They have already already been hacked. Ledger has been hacked back in 2019 by KeyLabs. KeyLabs is the same auditor company that audited Cypherock last month and I'm happy to tell that there were no major vulnerabilities found in it. The other one is no inheritance infrastructure. So why is inheritance a major problem for the for the crypto users? It's about 90% of crypto users worry if their cryptocurrencies will be transferred to the next generation and there's no available solution right now that they can see.

So what are the modern day challenges for cryptocurrency HODLers? The trust in a centralized authorities has recently been shattered by all that's going on and recently people have have started to shift at a major scale towards self custody solutions and that's when they are about to understand what are the limitations that that's stopping the cryptocurrency space. So the first one is bad seed phrase backup practices. There's no there's no information on how to how to conveniently store your cryptocurrencies seed phrase backups and if the seed phrases are not stored in a secure way, people usually get hacked or attacked or or their seed phrases are lost. As a matter of fact, there about 20% of the Bitcoin ever been mined has already been lost or stolen in the past 10 years or 12 years of existence of Bitcoin. Now with more blockchains coming up, there's more wallets, more seed phrases, more DApps and everyone has their own seed phrases, own private keys. So it's getting exponentially harder for a user to be able to store these seed phrases. Other than that, there's these hacks around seed phrases and like we saw in the case of Slope Finance where about $5 million funds stored in the software wallet was stolen because the seed phrase was stored in plain text and the hacker was able to extract out all these seed phrases and the funds related to them. The other one is estate planning which is again inheritance. There's no readily available solution for crypto inheritance right now and that's what we are planning to change. By the way, this image is just for dramatization. Please do not smoke near your seed phrases. It could be catastrophic.

Okay. So why do I say there's no perfect solution for seed phrase or self custody right now? So like blockchains, blockchain trilemma for wallets, there is a dilemma. The dilemma is between convenience and security. Software wallets are convenient but the least secure. Then there's hardware wallets which are convenient and secure but the problem for hardware wallets is it's expensive for people to buy, plus normal user coming from a Web2 background does not have the expertise to store their seed phrase and make them inheritable in the future. The other one, the most secure one is multisig wallet, but multisig wallets are too complex for normal users and there's no way a expert can suggest or recommend a multisig wallet to a new user. So there's an ideal solution that we believe at Cypherock we have found and that is the world's safest stress-free hardware wallet where a new newly onboarded cryptocurrency user can can store their seed phrases without being ever without ever worrying about their seed phrases.

So how it works? So Cypherock X1 has five components. First one is X1 wallet. It's a dual chip architecture with a self with a secure element in it and the secure element stores the private keys which is not a not the full private key that I'll be explaining in the future in the near future. So it stores a part of the it stores a part of the private key and the rest of the parts are divided into four of these X1 cards. So in total there are five components which store these private keys of your of your crypto wallet and you never have to worry about your seed phrase backups. Then there's CySync desktop app. This is the interaction layer of the crypto portfolio management and crypto inheritance.

So like I told you, Cypherock X1 leverages the power of Shamir Secret Sharing where it where the seed phrases and the private keys of the wallet are divided into five components and you need any two of these five components in order to recover or access your funds.

So we have designed the product in a way that we have it's convenient as well as we have security in mind when we built it from the ground up. So first one as I told you was Shamir Secret Sharing where you need any of two of the five components to avoid single point of failure. So single point of failure for cryptocurrencies is seed phrases which again leads to the limitation factor for cryptocurrencies. These seed phrases can be lost, these seed phrases can be stolen, but with Shamir Secret Sharing you do not need to worry about single point of failure because now there's five components out of which any two of them will be will help you access your funds. Now while interacting with the customers, we realized that many customers had the apprehension if someone is able to get their hands on two of those five components they would be able to drain them. But with the PIN protection on top of the cryptocurrency wallet X1 wallet, you cannot an attacker even if he is able to get his hands on two or more of these wallets of these components of the wallet, he still needs the PIN protection in order decrypt the PIN protection which is in a way impossible to get into these these funds. The third layer of of our security module is decentralized distribution. So these five components can be stored as far apart as different continents or like as far as you can take them. This solves a problem of $5 range, five dollar range attacks. So five dollar range attacks is nothing else but a attacker trying to physically attack you with a cheap tool in order to extract your seed phrases. But in case of X1 wallet, there's no single hardware component that he needs in order to take take your funds. There are different components, you can distribute it distribute those components at any place that you want with at any geolocation or at any trusted source of your of yours.

Now why other hardware wallets are of no competition for X1 wallet? So let me bring you to the no seed phrase backup Nevada example that happened just last week, 19th of December. So there was a cop while suspect while checking a suspect, he accidentally exposed all his seed phrases to publicly to everyone and the user could have potentially lost all his funds just because of this. Other than that, there's 20% of Bitcoin that has already been lost. So seed phrases are the biggest limitation factors for for cryptocurrencies.

Right now all the cryptocurrency wallets just stores one of the seed phrases and they do not give you the capability of storing multiple seed phrases. This leads to a an inefficient way of portfolio management for the users because users have to maintain multiple Excel sheets in order to distinguish their funds and their multiple portfolios. With Cypherock X1 you have four different hardware wallets each with different seed phrases within a single hardware wallet and therefore you can manage multiple portfolios up to four portfolios into a single hardware wallet.

So these four slots of of seed phrases allow you to use your X1 as a backup for other seed other hardware wallets or software wallets like Ledger, Trezor, MetaMask and Phantom. So like in the picture that you see, first wallet is generated from the X1 wallet and you can store your Bitcoin, Ethereum, Solana or any other coin that we support. Then there's slot number two which is taken over by MetaMask. So you can just extract your private key from MetaMask or seed phrase from MetaMask and store it into your X1 wallet and thereby you will be able to manage all your MetaMask funds from your X1 wallet. Then the slot three is with Phantom, same as MetaMask. You can store and manage all your cryptocurrencies from a single place and then the fourth slot is taken by Ledger Nano. So if you have a Ledger Nano or Trezor, you can store your seed phrase from that Ledger Nano into your X1 and manage all your Ledger Nano funds from X1 and this way you will make your Ledger Nano also seedless and you will never have to backup your seed phrase for for your Ledger Nano or Trezor or any other hardware wallet.

Now crypto inheritance. Crypto inheritance, there's a saying in cryptocurrencies that this is a generational wealth game. But what happens if your generational wealth does not transfer onto your next generations? This is the exact fear that the many of the cryptocurrency users are having and facing right now and we are trying to eliminate that fear. This is a coming soon feature and we will be launching this in the first half of of next year and once it's launched, this will be the first hardware based crypto inheritance. There are software based crypto inheritance but they haven't made big just because of the apprehensions that people have into software security modules.

Open Source with Secure Chip. So Cypherock X1 is a open source project and all our firmwares and all our applications like CySync are open sourced. It's and there's a secure element already installed in the hardware wallet. So open source projects can be there's an apprehension in the mind of users that open source projects can be hacked because all their repositories are open and an attacker can find it. But all the seed phrases and all the private keys of your funds are stored into a secure chip and they are always in an offline mode. So there's no way user an attacker can get to your funds in any way possible and it's the only the user that can be able to get into the security module is been designed that way.

How does X1 compare with existing Wallets? X1 is a open source hardware wallet which solves physical attacks. Its security is customizable, a developer can build upon your upon X1 because it's an open source product. We have inheritance, we have cold upgrades and we have unexposed private keys which no other hardware wallet supports or offers.

So at Cypherock we ensure no single point of failure with seed phrases and allow user to distribute fragments of their seed phrase across the globe for heightened security. Seedless. Trustless. Decentralized. That's all from my side. Right now I'm traveling so I won't be able to showcase all the use cases of all the layers of this application of our CySync application. But this is what it looks like. So you can see all your portfolios into a single hardware wallet. You can have multiple wallets up to four wallets with multiple multiple accounts in them and then you can manage all these wallets as different portfolios like in case of a founder or a VC VC fund manager. They usually have to they usually are responsible for the for their personal money and also their fund money. So with Cypherock X1 they can manage all their funds from a single portfolio from a single interface and they can track all the transactions and in the future we'll be we'll make that inheritable too. That's all from my side. If you have any questions please let me know.

Yeah, this was really awesome Naman. One question for me is what happens when the physical device gets damaged or you want to transfer your seed phrase to another Cypherock wallet or another compatible hardware wallet. Is that possible?

Yes, that's completely possible. So in case one of the five components gets damaged or let's say two of the five components gets damaged, like I mentioned you need only two of the five components in order to access your funds. So in case multiple components of the damage get get damaged, in still you will be able to access your funds which is not possible with any other hardware wallet. The second question you asked was will you be able to transfer your funds to some other wallet? Yes. So we are a BIP39 compatible wallet and with being a BIP39 compatible wallet we are compatible with all the mainstream software and hardware wallets out there in the market. So you can like it it would take a maximum of one to two minutes to transfer your funds from one wallet to another.

Excellent. And could you speak on kind of the the different ecosystems you support on the wallet? So you mentioned I believe Bitcoin and then Ethereum and Solana. Are there any other ecosystems that the wallet supports that you want to mention?

Yes, so we I'm sorry... Yeah. Oh no, no go ahead. Sorry. Yes, sure, for sure. So right now we support over 10 blockchains and the list is increasing by every day. So right now we support Bitcoin, Solana, Ethereum, Polygon and we have 10 more EVM based chains being supported in the next one month. So with the firmware upgrades, we are in the process of catering to all the ecosystems that are available in the crypto space right now.

Excellent. Love to hear it. Crowd, is there any questions from you? Feel free to speak up or type your question. I'll be happy to read it out.

If not, I do have another question... going once, going twice... yeah okay. So you mentioned the software is open source. Is there an opportunity for people to help out, build out Cypherock or are there any open positions you're looking to fill, possibly?

For sure. I can link... so so first of all let's start with open source. We with our SDK launch, we will be welcoming people to come over and build on top of Cypherock X1 and the infrastructure that we are building upon. We will be happy to support the developers building upon it. For open positions, yes, we have few open positions. I can link... I don't exactly know what all positions that that are open right now but I can link below the the job profile page. Yeah, I can send it over in the messages.

Cool. And last prompt here for the crowd if any questions? Going once, going twice, sold. All right. Thank you so much Naman for coming on. I really appreciate you taking the time to present to us.

And just want to let everybody here know about our awesome operators, fundraising operators that is. So did you know that DD's funding operators Chuck and Wickist are here to help you fundraise your projects? In their fundraising hub on the Discord server you can find support in writing grant applications, learning about fundraising, budgeting, pitching, and they can even introduce you to grant leads from different protocols. So if you need any help taking your project to the next step, be sure to drop by office hours, which are held twice a week, or schedule a one-on-one with them. And yes, doubling that, great work Naman. Thank you again for coming on. And just want to wish everybody a very happy Friday, happy weekend, happy holidays. Next week we will be off so you can take some time to quote unquote touch grass or play in the snow or what have you. Just take a break, get away from the screens and we will catch you here in the new year on the 6th of January. And yeah, all the best everybody and I'll be dropping the POAPs in the general chat as well as here and we will see you in the new year.