A new crypto wallet just launched on Apple's App Store uses Web2 spoofing to ensure users don't need to interact with seed phrases or passwords.
According to a May 11 announcement from the app's developer, Kresus Labs, the new wallet stores users' private keys in an Amazon Web Services hardware security module (HSM) and uses “magic links” and 2FA to authenticate users.
Most crypto wallets require users to write down a seed phrase or "seed word" when setting up an account. If a user loses their recovery phrase and their device crashes, they will never be able to access their account. For this reason, some cryptocurrency users prefer to store their cryptocurrencies in exchange accounts. But events like the FTX debacle have also led to concerns that keeping cryptocurrencies on exchanges may not be safe either. Speaking to Cointelegraph, the Kresus team said their new wallet app attempt s to solve this problem using A wallet infrastructure called "Magic" and a software development kit (SDK) that stores users' private keys in a dedicated Amazon Web Services computers are designed to store highly sensitive information.
AWS computers encrypt the user's secret key with a master key that cannot leave the hardware module, much like a hardware wallet does. This eliminates the need to store the seed word or private key on the device or as a paper backup, the team said.
Unlike centralized exchanges, Kresus does not use passwords to authenticate users, as stealing password hashes and cracking them is one of the most common techniques hackers use to gain access to online accounts. Instead, it requires users to click a link in the email every time they try to log in. The app also uses 2FA to protect accounts in case a user's email address is compromised. Users do not need to cut and paste cryptocurrency addresses on Kresus when sending cryptocurrency. Instead, the app allows each user to register a free .kresus domain name through Unstoppable Domains, which they can use to send cryptocurrencies to other people.
“We're really trying to make a really better mousetrap for any Web3 user,” Kresus CEO and founder Trevor Traina told Cointelegraph. “You can move all your stuff from multiple places to one place and make it very accessible yet highly secure but for Those who are not yet comfortable with Web3 because they're afraid they'll be locked out." The Kresus team said that because of the way Magic Labs' infrastructure works, neither they nor the Magic development team can see a user's private key during account creation or login, so they cannot make unauthorized transactions. The Web3 application developer closed a $25 million funding round in March to support the development of what it calls SuperApps.
Kresus is not the only wallet offering seedless boot through the Magic SDK. Web3 gaming company Immutable told Cointelegraph that it is also developing a seedless wallet called “Immutable Passport,” which uses the same infrastructure. Passport will run on the Immutable X and Immutable zkEVM networks and will be used for players joining Immutable's Web3 games such as Gods Unchained and Guild of Guardians.
