Kresus Labs unveils a unique crypto wallet that ditches traditional seed words, offering enhanced user convenience through an innovative sign-in system called “magic links”. Thus, eliminating the need for password hash storage.

Kresus Labs has emerged with a novel crypto wallet, now available on Apple’s App Store. This wallet redefines user interaction by sidelining seed phrases or passwords, employing a clever mechanism borrowed from Web 2.0.

As shared by Kresus Labs on May 11, their trailblazing wallet secures users’ private keys within an Amazon Web Services Hardware Security Module (HSM), while confirming user identity through a blend of “magic links” and two-factor authentication (2FA).

Commonly, crypto wallets demand that users pen down a recovery phrase or “seed words” during account creation. Should the user misplace this recovery phrase and their device malfunctions, their account is rendered inaccessible permanently. This risk has led some crypto enthusiasts to store their digital assets on an exchange account. However, past incidents, like the FTX collapse, have raised concerns about the safety of such storage methods.

Addressing this, Kresus developed its new wallet application to mitigate this issue. It utilizes a wallet infrastructure and software development kit (SDK) named “Magic”. This system stashes the user’s private key on an Amazon Web Services machine, expressly engineered for sensitive data storage.

This AWS machine encrypts the user’s key via a Master Key, which cannot exit the hardware module, emulating a hardware wallet’s function. Consequently, it eliminates the need for seed words or private keys to be stored on the device or written down as a paper backup, Kresus shared.

Differing from a centralized exchange, Kresus abstains from using passwords for user authentication, as password hash theft and cracking are common strategies employed by hackers to access web accounts. Instead, it necessitates that users click a link from within an email each time they attempt to log in. Additionally, it employs 2FA to fortify the account against compromise through the user’s email address.

In terms of crypto transactions, Kresus spares users the hassle of copying and pasting crypto addresses. It offers users the opportunity to register for a free .kresus domain name via Unstoppable Domains, to facilitate crypto transfer.

Striving to provide an unmatched tool for all Web3 users, Kresus CEO and founder, Trevor Traina expressed his vision to Cointelegraph. He mentioned the company’s intention to offer a convenient, yet highly secure single point of operation for multiple transactions. Furthermore, he described their product as a welcoming gateway for individuals hesitant about Web3, due to the fear of getting locked out.

The team at Kresus reassured that, owing to Magic Labs infrastructure’s design, neither they nor the Magic development team can view the user’s private key during account setup or login. This ensures that unauthorized transactions cannot occur.

To back its ambitious SuperApp project, the Web3 app developer successfully raised $25 million in a funding round in March.

Kresus isn’t the only entity to leverage Magic SDK for seedless onboarding. Web3 gaming company Immutable also disclosed to Cointelegraph its plans to develop a seedless wallet, dubbed “Immutable Passport,” using the same structure. This wallet will operate on the Immutable X and Immutable zkEVM networks, and is set to serve as a boarding platform for players of Immutable’s Web3 games, like Gods Unchained and Guild of Guardians.