0xPass, a startup dedicated to making crypto wallets secure and user-friendly, has recently raised $1.8 million in a pre-seed funding round. The investment will enable the company to develop innovative login systems for web3 and revolutionize the way users interact with their non-custodial wallets.
Key Takeaway
0xPass has secured
.8 million in funding to develop secure and user-friendly login systems for web3. By utilizing multi-person computation (MPC) and its Passport Protocol network, 0xPass aims to provide developers with flexible authentication and transaction rules while ensuring the security of users’ assets. The company’s innovative approach and backing from prominent investors position it as a leading player in the evolving crypto wallet space.
Simplifying User Experience with Enhanced Security Features
0xPass aims to address the cumbersome login process that often requires technical expertise and complicates the mass adoption of crypto wallets. Incubated at the prestigious Stanford Blockchain Club, the company offers developers the ability to integrate multiple authentication methods into non-custodial wallets, similar to the services provided by Auth0 or password managers like 1Password.
By providing enhanced security features and user-friendly interfaces, 0xPass seeks to bring web2-level convenience to self-custodial wallets. Self-custody gives users full control over their assets, a feature that has gained significant demand following the collapse of centralized exchanges like FTX. With the recent decline in speculative crypto activity, the focus has shifted toward building robust blockchain infrastructure.
Utilizing Multi-Person Computation for Enhanced Security
0xPass employs an increasingly popular cryptographic technique called multi-person computation (MPC) to ensure the security of users’ private keys. Unlike traditional MPC solutions, which split key shares between users and service providers’ backends, 0xPass distributes key shares solely across network nodes. This unique approach allows developers greater flexibility in customizing authentication and transaction rules.
By utilizing secure enclaves and advanced MPC algorithms, 0xPass creates a non-custodial system that keeps user assets secure and accessible. The company’s Passport Protocol network ensures that private keys are split among participating nodes, offering a decentralized and highly secure infrastructure for web3 login systems.
Backing from Prominent Investors
0xPass’s $1.8 million pre-seed funding round attracted support from an array of notable investors in the United States and Asia. Among the backers are AllianceDAO, Soma Capital, Alchemy Ventures, and Blockchain Builders Fund. Famed angels Balaji Srinivasan, the former Coinbase CTO, and Cory Levy from Z Fellows also joined the round.
While the recent turmoil in the crypto industry affected investor sentiment, 0xPass remained resilient. The company’s backers remain confident in the future of non-custodial wallet solutions and recognize the significance of streamlining the user experience while maintaining optimal security.
Future Challenges and Potential Impact
Despite the relatively limited competition in the MPC space, 0xPass recognizes that varying developer requirements and evolving regulatory landscapes present challenges. The decentralized nature of the crypto space raises questions about the potential impact of future regulations on wallet infrastructure.
