Trying to shore up crypto’s security woes

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Hello reader,

In reading today’s premium article, something came to mind: I don’t even remember when two-factor authentication became a thing.

It feels like it just appeared one day and seamlessly became a part of how we manage our online accounts. And while this might lead to some real “unsung hero” situations, I think that’s a great way for tech to show up – unassumingly and effective with its intended purpose.

Not everything needs to be hailed as a game changer for months or even years before it comes out.

There are clearly some kinks still being worked out in the crypto world, and maybe the solutions discussed in today’s featured piece can be its own version of two-factor authentication.

Today we look at:

• How crypto is saying goodbye to seed phrases
• The US$2 million pre-series A of a Singaporean direct-to-consumer startup
• Other newsy highlights such as the passing of a Singaporean tech pioneer and Animoca’s US$1 billion fund

Premium summary

A puzzle within a riddle, stored in an enigma

Image credit: Timmy Loen

When I read about security measures in tech and crypto, what comes to mind is those ridiculously intricate European safes – multiple keys and secret compartments holding unique buttons that must be pressed in a specific sequence, or something.

Of course, that might just be because I’m not an expert in the space. To crypto enthusiasts, it could make all the sense in the world. Hopefully, my colleague Deepti’s article on crypto’s move away from seed phrases sheds some light on the matter for you.

• The cons of seed phrases: For an account to be restored, users have to keep their seed phrases safe. However, seed phrases can be hacked from the device that stores them. Some users write down their seed phrases on a piece of paper to avoid the risk of hacking, but this may still end up being lost or stolen.
• A new solution: Multiparty computation (MPC) addresses some of the limitations of seed phrases by generating and storing pieces of a private key among different parties. Individuals can split their key between their own devices and a crypto service provider, giving them their own version of two-factor authentication.
• Here comes the “but”: Since MPC protocols need to exchange a larger amount of data than standard seed phrases, transactions using it can take a longer time to transmit data. MPC adoption can also face hurdles from individuals who are already used to seed phrases as the standard for their accounts.

Read more: How crypto is killing seed phrases to usher in mass adoption

If I had US$2 million, I’d be able to evolve too

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