Cypherock
  • Introduction
  • Design Decisions
    • The balance between security and convenience
    • Cypherock X1 Hardware architecture
      • Using ultrasonic welding for the X1 Vault enclosure
      • Encrypted NFC communication for X1 cards
      • Using Javacards instead of MicroSD
      • Choosing USB vs QR Code
      • Why the X1 cards are not upgradeable
    • Cypherock is BIP39 compliant
    • Private keys should be near to impossible to extract
    • Conflict between trusted parties should not result in unauthorized access
    • Using Shamir Secret Sharing vs. Multi-sig
      • How is Shamir Secret Sharing implemented within Cypherock X1
      • Why Cypherock has a default 2/5 threshold scheme
      • Rejected Key Schemes
    • PIN Protection on Cypherock X1
      • Difference between backing up your PIN vs. Seed Phrase
  • Security Overview
    • Introduction
    • Keylabs - Third Party Security Audit
    • Remote Attacks
    • Physical Attacks
      • $5 Wrench Attack
      • PIN Brute Force Attack
      • Evil Maid Attack
      • Flashing Malicious Firmware
      • Side Channel Attack
      • Supply Chain Attack
  • Cypherock X1 Features
    • Eliminate messy paper backups
    • Open source with secure elements
    • Use Cypherock as a seed phrase vault
    • All-in-one Portfolio Manager
  • Getting Started
    • Download cySync
    • Import Seed Phrase from existing BIP39 compatible wallet
    • Generate a new wallet with Cypherock X1
    • How Cypherock generates your 24-word seed phrase
    • Best practices in keeping your X1 cards secure
      • Use the protective card sleeves
      • Geographical Seperation
      • Choosing your guardians
    • How do I know I am not locked-in to using only Cypherock X1
    • How do I know my Cypherock X1 is genuine?
      • Email 2FA for Product Authentication
    • How to recover your Crypto assets in the case of loss or theft
    • What happens to my Cypherock X1 if Cypherock goes out of business?
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  1. Cypherock X1 Features

Eliminate messy paper backups

PreviousSupply Chain AttackNextOpen source with secure elements

Last updated 2 years ago

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Crypto wallets incorporate a key system - a private and public key - used for executing and authenticating transactions and signatures. Public keys generate addresses that can be shared to receive cryptocurrencies. Private keys on the other hand serve as the password to send cryptocurrencies. Therefore, whoever owns the private key, owns whatever cryptocurrency is secured by the wallet. Private keys in their traditional form are really hard to read by humans therefore was introduced as a means of simplifying an otherwise random unreadable string of alphanumeric characters. BIP39 introduced the concept of seed phrases which has become commonplace now in the world of web3.

Seed phrases come in formats of either 12/18/24 words and consist of a set of random words such as:

“clump smooth please walnut spin hotel want clump thank era neutral bleak”

To a computer, these words are processed as the 128-bit seed:

3494c4620c36d4f6e98c8131194fecc1681baedf073df1608b9d0ff76d46d02574b2686f39b747bb2e5dbbe522eab30084419caf49bb4a965cdccaeeac259a39

Naturally, seed phrases are easier for humans to process and secure - if you are interested in how seed phrases are generated, you can try out this . Please do not use any internet-connected website to generate your seed phrase, this example is given for educational purposes only. Although seed phrases became simple for individuals to understand, methods for securing seed phrases posed an immense challenge.

Most seed phrase backups come in the form of paper or metal sheets. Although popular, both forms of backups have the risk of being damaged, lost, or stolen. Most importantly, seed phrase backups today do not solve the core problem that seed phrases pose - a single point of failure. With access to the seed phrase, all funds secured by the wallet can be instantly transferred without requiring any form of authorization on the wallet itself. Therefore, a truly secure wallet system not only eliminates the problem of having a single point of failure but does not require a user to worry about seed phrases at all - essentially a seedless wallet.

Cypherock X1 is the world’s first seedless hardware wallet. When a wallet is created, Cypherock uses an algorithm called Shamir Secret Sharing to shard the private key. The private key is split into 5 shards which are stored on the X1 device and 4 X1 cards respectively. To re-derive, the private key, a threshold of 2/5 is used - any X1 card and X1 device or 2 X1 cards for example. Additionally, no one single shard can be used to derive the information on the other shard, therefore, if say one of the X1 cards is lost, the private key is still recoverable. This way, wallet shards can be distributed geographically to avoid a single point of failure with the private key. Instead of having to backup a singular seed phrase, Cypherock X1’s 5 shards become the representative of the private key thereby also eliminating the need to think about buying paper or metal backups.

BIP39
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