French crypto inclined startup, Dfns has successfully bagged $13.5 million in a seed funding round led by White Star Capital. This capital is an accumulation from the fundraiser which started in December two years ago.
The generated funds will be used to provide and promote the service offered by the crypto startup which includes protecting the secret codes to wallets of crypto users in financial technology firms and other financial institutions. As a major drift from the traditional security keys on crypto wallets, the funds will kickstart the onset of keyless wallets.
Companies will be able to obtain digital assets via crypto wallets codes by a process known as sharding. The passwords for the wallets will be divided and circulated to different places so that they don’t exist in one piece or their whole form. This will bring about the ‘keylessness’ of the crypto wallets.
The keyless wallet will be distributed amongst decentralized finance (DeFi) apps. The $13.5 million secured will furthermore be plunged into the research and development of cryptographic programs and at the same time, into the expansion of its staff strength.
Amongst the investors who partook in the seed round are Hashed, Coinbase Ventures, Susquehanna, and ABN AMRO Bank, a Dutch investment institution.
Upgrading Cybersecurity on Crypto Platforms
In recent times, there has been a concerning level of insecurity in the crypto space and this has invariably led to a high degree of skepticism toward crypto investments as a whole. This became more pronounced after the perpetrated hack on the Axie Infinity and Sky Mavis Ronin Validators.
The Sky Mavis scam was achieved by an attack on five out of the nine Ronin bridge validators who needed to approve a withdrawal from the platform. The Axie DAO attack was through a backdoor loophole accessed via the gas-free RPC that came as a result of a former transaction conducted between Sky Mavis and Axie DAO.
Although the breach was done in separate transactions, the loss recorded was to the tune of 173,600 Ethereum (ETH) and 25.5 million USD Coin (USDC) totaling $625 million in cryptocurrency.
As a form of reassurance for its users, the Vietnamese network, Sky Mavis has raised $150 million to reimburse affected wallets. The number of validators for the approval of any withdrawal has been increased to 21. This, coupled with the keyless wallets being developed by Dfns is capable of bringing an upgrade to cybersecurity.