Web3Auth Secures $ 13 Million From Sequoia India To Simplify Crypto Integration And Authentication – TechCrunch

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Web3 is considered the future of the internet because it gives people control over their own data and digital assets, but crypto developers have learned from the past when it comes to onboarding new users.

The current state of crypto integration is cumbersome and unnecessarily prolonged due to the seed phrase, a series of words created by the crypto wallet to regain access. Technically speaking, the opening sentences contributed to the loss of nearly 20% of all bitcoin in circulation, roughly the equivalent of Hungary’s GDP, according to Singapore-based crypto-infrastructure startup Web3Auth. , formerly known as Torus. Long passwords that users are advised to store in a secure location can be a significant barrier to entry for non-technical users accustomed to a simple “forgot password?” »Workflows on almost all traditional Internet platforms. There have also been security concerns with respect to platforms that have control over a user’s private keys.

Web3Auth, a non-custodial key infrastructure solution for Web3 apps and wallets, wants to solve these problems by leveraging the social accounts and devices that traditional users already have to allow users to manage their keys intuitively.

“Users use keys as accounts to exchange, hold assets, or simply interact with blockchains, so the control and security of those keys is important,” CEO and co-founder Zhen Yu Young told TechCrunch. “Non-custodial wallets help you manage your key, ranging from solutions as simple as writing a sentence on paper to more secure methods.”

Web3Auth is powered by the Torus Network, an open source, non-custodial distributed key management network. Web3Auth leverages this infrastructure to make Web3 authentication – including passwordless authentication, SMS authentication, or other OAuth methods like Google, Twitter, Discord, and Reddit – in apps and wallets simple. and intuitive to use.

Web3Auth announced today that it has closed a $ 13 million Series A led by Sequoia Capital India. This round included the participation of Union Square Ventures, Multicoin Capital, FTX, Bitcoin.com, DARMA Capital, Chainstry, Hashed, KOSMOS Capital, Kyros Ventures, LD Capital, Minted Labs, P2P Capital, Phoenix VC, Staking Facilities, YBB Capital, Moonwhale Ventures and Decentralab.

The new capital brings its total raised to $ 15 million since its inception in 2019. It will accelerate expansion in decentralized games, NFTs, and social apps, and advance its mission of eliminating lead phrases and making it happen. decentralized blockchain authentication accessible to all with Series A funding. The company also plans to increase its workforce, Young told TechCrunch.

Image credits: Web3Auth

Web3Auth’s authentication infrastructure is designed to allow developers to easily create familiar login flows such as single sign-on with Google and Twitter, eliminating the need for users to interface directly with key pairs. vulnerable public-private. It is also designed to give more advanced users the option to connect the wallet or key management system.

“We designed Web3Auth to circumvent the UX hurdles that are holding back the adoption of traditional cryptography. True to our focus on accessibility, we wanted Web3Auth to meet users wherever they are. Intuitive and familiar login flows are necessary if we are to bring the next wave of mainstream users into crypto, ”Young said. “We are encouraged that some of the best investors in the world care deeply about the usability and affordability of crypto. We are extremely grateful for their support and we will be using it to catapult Web3 into the future.

In 2021, more than 300 applications and wallets selected Web3Auth to secure more than four million user private keys. Its users have increased 30 times since the same period last year, Young noted.

“Our main users are wallets and Web3 applications. Many popular wallets in ecosystems, such as Binance Extension, Kepler, Kukai, Skyweaver, and Kash are powered by Web3Auth “in their core feeds to increase conversion rates, reduce losses and support tickets, Young said. at TechCrunch. “On the application side, particularly popular NFT and gaming applications using Web3Auth include Skyweaver, Rarible MyCryptoHeros, and others.”

Young pointed to similar platforms like Magic Link, which provides key management through a different infrastructure like AWS Cloud HSM to store user keys, and the underlying Fireblock infrastructure which uses multi-party compute (MPC) / threshold cryptography. However, this is more enterprise and internal authentication compared to the Torus platform which is more external, Young said, adding that a similar analogy could be Okta and Auth0 in the web authentication space. 2.0.

“We believe the non-custodial nature of Web3, which allows users to control their own data and fate, is a big step forward in empowering users. This makes data more portable and secure while continuing to enable existing connection product features, giving users the best of both worlds. Sequoia Capital India is excited to partner with a team and product that is focused on making crypto more accessible not by adding more bells and whistles, but by tackling a long-standing issue at its core. most fundamental level ”, Anandamoy Roychowdhary, Director of Sequoia India.

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