Private- key- management firm Torus, which recently closed a $2 million seed round led by Multicoin Capital is also receiving a lot of support from notable cryptocurrency exchanges like Coinbase Ventures, Sixth Horizon, Sixth Horizon, Accomplice and Binace Labs, which invested $500,000 in the round.
Solving a Critical problem
The private key management firm is receiving a lot of support from crypto exchanges, due to the importance of its goals and objectives. The firm is solving one of the most critical problems slowing the adoption of web3.
Blockchain are built on the support system of private key cryptography. All users are identified and authenticated on a blockchain through a set of keys, which is represented as random string of alphanumeric characters.
In the case of bitcoin, the key that gives the user access to spend any amount of money on the network is referred to as a private key. Users are always admonished to always keep their keys safe, as they can be used by anybody who has access to the information.
Due to security issue, ease of use and simplicity, most users usually cede the management of their private keys to a bigger and independent body, such as cryptocurrency exchanges. However, most of the exchanges have at a time or two-faced the issue of hacking, which sometimes results in the loss of millions of dollars.
The Chief Executive Officer of Torus Zhen Yu Yong stated that when newcomers got exposed to the cryptocurrency ecosystem, they are always fascinated by its decentralization, but they always face a form of difficulty or two, whenever they wanted to start using the decentralization applications and interacting with the blockchain itself. He added:
‘’ They had to understand a lot of very difficult concepts, such as public/private keypads…. We just want to abstract that all away from the new users so they could be left with a simple, secure and not forgetting a very seamless solution.’’
To safeguard the information on user’s private keys, Torus splits the information on multiple computers servers, a process generally referred to as sharding. The process is safe and very secure, even in the event of a break-in or hacking, it will be impossible for the hacker to have access to the information since it’s not located in a single place.
The fragility of the private keys is so grave; an impersonator may lay claim to one’s asset without any issue. Bitcoin Exchange Guide reported last month, that alleged bitcoin creator Craig Wright vows that Satoshi’s Private Keys will be signed.
The crypto enthusiast states that he will sign a transaction, after proving that he is indeed the creator of bitcoin, and not before proving all doubters wrong.
He also claims that most exchanges are a fraud and an avenue to perpetrate money laundering, while also sharing his view that BSV will soon effectively replace Bitcoin in the coming future.