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Cypherock Cover is an innovative, non-custodial, non-KYC, and censorship-resistant service designed to secure digital assets against two common risks: PIN loss and inheritance. Launching in September 2024, Cypherock Cover aims to be the first hardware-based, multi-chain, interoperable solution for digital asset recovery and inheritance.
The Need for Cypherock Cover
In the world of decentralized finance (DeFi), self-custody is paramount, but it also comes with significant risks. Users often rely on hardware wallets to secure their digital assets, yet these wallets can still fail due to human error, physical attacks, or loss of access, such as forgetting a PIN or passing away without a clear inheritance plan. Billions of dollars in cryptocurrencies have been lost because of inadequate solutions to these problems.
Cypherock X1: The Foundation
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Cypherock X1, launched in 2022, is the foundation of Cypherock Cover. The X1 wallet employs Shamir’s Secret Sharing (SSS) technology to split a user’s master seed into five cryptographic parts, stored on tamper-proof hardware devices called X1 cards. To authorize a transaction, the user needs 1 X1 card and vault device, eliminating single points of failure and greatly enhancing security.
PIN Recovery with Cypherock Cover
PIN recovery is a critical feature of Cypherock Cover. Users can set up a PIN recovery plan through the cySync desktop app by connecting the X1 vault and entering their PIN. The PIN is encrypted and stored on Cypherock’s servers, but it can only be decrypted by the user’s X1 cards, ensuring that even Cypherock cannot access it. If a user forgets their PIN, they can retrieve it by completing an authentication process via the cySync app, which involves email verification and using one of the X1 cards. This service is completely non-custodial and does not require KYC, ensuring that the user remains in control of their digital assets at all times.
Estate Recovery: A New Approach to Inheritance
Estate recovery is an extended version of the PIN recovery process. Users can designate a nominee—whether a lawyer, a trust, or a family member—who will receive access to their digital assets if they become inactive due to death or incapacitation. The nominee needs an X1 vault and one of the user’s X1 cards to initiate the recovery process. The user’s PIN and a final message are encrypted and stored on the X1 cards and can only be decrypted by the nominee after successful authentication. The estate recovery process is non-custodial, requires no KYC, and is designed to operate even under nation-state intervention.
Conclusion
Cypherock Cover offers a comprehensive solution to the challenges of digital asset recovery and inheritance. By combining advanced cryptographic techniques with user-friendly features, Cypherock Cover ensures that users can recover their digital assets in case of PIN loss and securely pass them on to their heirs. This service represents a significant step forward in making self-custody more secure and accessible for everyone in the crypto space.
