Believing that both hot and cold storage, as they are right now, are not as secure as they can be, Tel Aviv-based crypto firm ZenGo has announced its own “chill storage” solution.
The company claims that its solution will be the first non-custodial wallet without private keys, points of failure, or passwords, plus a custodian-grade experience for users.
“This is the first secure user controlled crypto wallet which can be adopted and used by anyone, removing the typical friction points you find in alternative solutions,” said Ouriel Ohayon, co-founder of the company.
“Until now users had the choice between two poisons: be their own bank at the cost of complexity, human errors or hacks or trust a third party blindly (which they chose by default because it’s just easier but then lose total control).”
Zero points of failure
Ohayon pointed to his frustration with “overwhelming and tedious” state of crypto wallets during his first entry into the crypto industry as the fuel that drives ZenGo to give users total control over their funds, minus the annoyances that come with a traditional wallet.
ZenGo claims that its decentralized security protocols, as well as its distributed key management, make it possible to erase every single point of failure from their system. It also makes “seed phrase or mnemonic non-sense” and a hackable or sim-jacking based password system moot.
In addition, ZenGo boasts biometric encryption and guarantees user funds will not be impacted if either the user’s phone or a server are hacked. The company also notes that its protocol has been audited by Kudelski and AppSec.
Another feather in ZenGo’s cap is the app’s blockchain-agnostic nature. Unlike multi-sig technology, it can support any kind of asset.
“Once we knew we could take the core principles of threshold cryptography and distributed computation and make it highly performant on the mobile, we knew we could build a step function improvement to whatever was existing,” said Ohayon.
Paid subscription in the works
ZenGo is going public with its mandate of simplicity and security following a successful seed funding round last year. The company was able to raise $4 million in seed funding from investors such as Samsung, Benson Oak, and Elron. ZenGo also managed to secure three blockchain grants from Zcash, Tezos, and Zilliqa.
“We believe wallets will become the default interface to interact with blockchain based services as long as they are usable,” said Ohayon.
Ohayon notes that after a few weeks of beta, ZenGo already managed to record seven figures’ worth of assets under management (AUM) in US dollars in their system.
Early adopters will enjoy a lifetime of free access. Once established, ZenGo plans to switch to a paid subscription model for new customers. Additional services aimed at generating transaction fees are also in the pipeline.
ZenGo is currently only available on iOS. An Android version is due to launch in a few weeks.