Krayon Digital, a digital multi-party computation (MPC) wallet solutions provider to start-up and enterprise clients, recently announced its strategic partnership with Israeli blockchain security consulting company, Sayfer.
“The partnership between Krayon and Sayfer is the result of a shared ambition – to revolutionise the security landscape within digital asset management,” Hamilton Keats, CEO and co-founder of Krayon told FinanceAsia.
Typically, a cryptocurrency or digital asset wallet is paired with a single private key that authorises transactions. However, this means that if the private key is stolen or lost, it creates a single point of failure where all digital assets secured by the key are exposed to risk.
Krayon, on the other hand, provides digital wallet solutions based on MPC technology: a cryptographic protocol that enables multiple parties to contribute to a database and run computations on its basis in a secure manner, without disclosing their own input to others.
The implementation of MPC technology involves splitting private keys into pieces, or shards, that can be distributed among multiple trusted parties, such as different departments within an organisation or even different geographical locations, Keats explained.
Such deployment avoids a single party having full access to a whole private key, which greatly reduces the risk of unauthorised crypto asset access or theft.
The partnership with Sayfer will enable the development and implementation of “a comprehensive suite of [security] measures”, including end-to-end encryption, secure key generation, storage and recovery mechanisms, multi-factor authentication, and continuous security audits.
The collaboration roots from an initial all-round assessment on Krayon’s protocols, where both parties saw a lack of attention to private key management in the field, Keats told FA.
“We’ve seen so many people dealing with tens of millions of dollars [in digital wallets], but with no private key management or private key security involved,” he said.
“Our joint efforts will bring together Sayfer's expertise in key management audits and Krayon's cutting-edge MPC technology to deliver a secure and seamless experience for our clients,” Nir Duan, Sayfer’s CEO, commented in the release.
Blockchain and beyond
Discussing trends across the Web3 space, Keats pointed to asset tokenisation as the most exciting use of blockchain technology across Asia’s capital markets. “This revolutionary process will completely streamline global financial markets and enhance transparency.”
Although issues around security, regulatory compliance, and private key management remain some of the main challenges for the success of Web3, Keats is bullish on regulatory progress across the region.
He noted that key hubs, including Singapore and Hong Kong, are building friendly innovation framework to create regional sandboxes, and some financial institutions are seeking to tokenise their assets. These, Keats said, send promising signals of “a massive opportunity” for players building the digital asset space.
Looking ahead, Krayon aims to make MPC a more accessible and flexible solution available across the digital asset management world. The key to this lies in improving usability, which includes simplifying the complicated wallet set-up process, and offering flexibility in distribution adjustments, Keats told FA.
Embedding MPC wallet solutions into broader digital asset capabilities, such as a consumer-facing app built upon the same software development kit (SDK), is a long-term goal for the partnership.
As enterprises usually manage larger amount of asset than individual users, the ability to recover the losses, or to prevent insecurity in the first place, is crucial, Keats reiterated.
“Our ultimate goal is to offer individual clients the same level of services as we are able to offer start-ups and enterprises,” he concluded.
