The balance between security and convenience
When it comes to building crypto wallets, there is always a tradeoff between security and convenience that drives decision-making. We at Cypherock fundamentally believe that users in web3 will have two different wallets just like how the average user today has a savings account and a checking account. The user will be using a hot wallet as a checking account for doing more frequent transactions optimizing for convenience and a hardware wallet as a savings account for keeping most of the assets and optimizing for security. Cypherock aims to be the default Crypto savings account for the user.
There are crucial wallet functions such as entropy generation, private key storage, and transaction verification that are safest when they are carried out in an offline hardware-based environment. Although hardware solutions carry out these functions in certified hardware environments, they leave a crucial element of backups exposed to human error - which renders its complexity useless. Wallet backups refer to seed phrase backups, that are usually stored on pieces of paper, or metal. Wallets backups essentially expose your private keys to prying eyes that if lost or stolen would mean the loss of your Crypto assets. In order to remove the need to back up the wallet completely, Cypherock built a state-of-the-art hardware wallet that combines Shamir's Secret Sharing and tamper-resistant hardware to break down your seed phrase into 5 Cryptographic parts such that you need any 2 but at least 2 parts to make a transaction. Hence, even if you lose any 3 Cryptographic parts, your assets are still accessible from the remaining parts.