How the Cypherock X1 Hardware Wallet Redefines Crypto Protection with Its Decentralized Design
Security is the first thing that comes to mind when discussing crypto hardware wallets.
Let’s explore the solution provided by the new Cypherock X1 hardware wallet.
About Cypherock
Cypherock X1 is an innovative crypto hardware wallet, developed by an India-based team founded by Rohan Agarwal and Vipul Saini.
Rohan Agarwal has been in software development since 2014 and entered the crypto space in 2017, collaborating with companies like Blockgeeks and Samsung.
Vipul Saini specializes in hardware security and embedded engineering, with experience at Lockheed Martin and as the first employee at Nymble Labs, contributing to the Cypherock team’s expertise.
The product was launched in 2023 and has been gaining popularity ever since. For the development of the X1, the team received $1M in funding from prominent industry players, including ConsenSys Mesh, Infinite Capital, Gnosis, and Polygon co-founder Sandeep Nailwal, among others.
They also received a Seed Grant from Starknet.
The team currently has over 20 members and is expanding.
Packaging
The Cypherock X1 arrives in a plastic-sealed cardboard box, containing:
- A hard-shell plastic case with a built-in Faraday cage for electromagnetic protection
- X1 Vault device
- 4 plastic X1 cards
- 4 RFID protective card sleeves
- 2 stickers
- 1 lanyard
- User manual and warranty documentation
- USB-C cable with an OTG adapter
- Branded webcam cover
X1 Vault Design and Specifications
The X1 Vault is a small plastic device measuring 3.0 x 6.4 x 1.5 cm, featuring a mounted 5-way joystick, a 2.4 cm OLED display, a USB Type-C slot, and a hook.
It is powered by an STM32 ARM Cortex M4 32-bit chip, paired with an ATECC608A secure element, and holds EAL6+ Certification.
The device is accompanied by four credit card-sized, encrypted NFC-based smartcards, each with an EAL 6+ certified chip.
Hardware
The STM32L4 microcontroller serves as the X1 main processor, working in conjunction with the ATECC608A secure element to handle device authentication and key security.
The cards rely on rigorously tested EAL6+ secure element.
How Cypherock Works and What Makes It Special
Cypherock X1 uses Shamir’s Secret Sharing to split your private keys into five parts (shards) — four cards plus the X1 device — decentralizing them. The user only needs two out of the five devices to restore and manage funds, whether it’s two cards or a card and the X1 Vault.
Since each shard is encrypted and different, compromising a single shard does not jeopardize the wallet’s security. The cards and device communicate via NFC technology and encrypted messages. Even if you lose three cards, you can still restore your wallet with one remaining card and the X1 device.
This innovative approach solves a significant security challenge for users: securely storing seed words.
If you prefer to store your seed words the traditional way, you can always extract them from the device, though they are never displayed on the screen by default.
Cypherock X1 is The World’s First Hardware Wallet to Securely Decentralize Your Private Key
Getting Started with Cypherock X1
The first step after acquiring your X1 Vault is to head to Cypherock’s Get Started page to download and install the CySync desktop app (compatible with Windows, macOS, and Linux). Connect the device via USB cable and complete the authentication process. A mobile app version is also in development and expected to launch within three months.
Following the app’s instructions, you’ll be guided to create your wallet, set up a PIN, pair all cards with the device, and import accounts for each cryptocurrency you plan to use. The process is simple and takes just a few minutes.
Sending and Receiving
The CySync web app is where everything happens. Once you’re logged in and your X1 Vault is connected, simply select the asset you want to send or receive, enter the recipient’s address and amount, and tap any one of the four cards on the X1 Vault to confirm.
You can also adjust the gas fees as needed. To receive assets, your receiving address will be displayed in both standard text and QR code format.
In both cases—whether sending or receiving—you’ll be able to verify that the address on your PC matches the one displayed on the X1 Vault.
Cypherock X1 User Experience: Handling and Design
The joystick is easy to use, and navigating through the menu feels intuitive and smooth. Pressing the joystick gives a light “click,” and tapping a card is followed by a beep sound. The display contrast is good, though I’d prefer it to be slightly larger for better legibility.
According to factory documents, the joystick’s lifetime expectancy should exceed 500,000 clicks.
Supported Assets and Connectivity
The Cypherock X1 supports over 9,000 cryptocurrencies, including nearly all major coins, ERC-20 tokens, and many others. For the complete list of supported assets, click here.
Cypherock uses the popular WalletConnect standard to connect with various crypto applications and platforms, including NFTs, swaps, DeFi, and more.
Security
What sets this device apart in terms of security is that it doesn’t store seed words or private keys in any single location. Even if the device or any of its cards are stolen, they are completely useless to the thief, as each piece holds only an encrypted shard. This feature allows you to store your sensitive data in separate locations, adding an extra layer of protection.
Cypherock assembles your private key only at the moment of signing a transaction, without storing it. This design makes Cypherock resistant to even the most sophisticated hacker attacks.
During the initial wallet setup, you are prompted to set up a PIN. In case someone gains access to both your device and card simultaneously, the PIN adds an additional layer of protection.
What Happens to Your Wallet if Cypherock Goes Out of Business?
The common question that arises with HD wallets is: what happens if the manufacturing company ceases to exist?
Since Cypherock is BIP39 compliant, you will always be able to extract your seed words and import them into any other BIP39 software or hardware wallet. To extract your seed words, simply navigate to the “View Seed” option in the device menu.
In the unfortunate event that your device is lost while the company is no longer operational, Cypherock is developing open-source Android and iOS applications. These apps will allow you to simply tap your card to easily restore access to your wallet.
Your private key is cryptographically split into five parts using Shamir’s Secret Sharing.
Built for Maximum Attack Resistance
The Cypherock X1 is built to withstand a variety of attacks, including supply chain attacks, $5 wrench attacks, evil maid attacks, and PIN brute-force attacks. You can look through Cypherock’s extensive documentation here for thorough descriptions of how they address these vulnerabilities.
Security Audits
The X1 has been audited by WalletScrutiny here and Keylabs here, the same company that identified flaws in popular wallets like Trezor and Ledger.
Cypherock’s Commitment to Open-Source Transparency
Open-source code tends to receive more scrutiny than closed-source alternatives because it is accessible to a wider community. With more people examining the code, any potential vulnerabilities or malicious elements are likely to be quickly identified and flagged. To enhance transparency and security, Cypherock has made its code open-source, allowing anyone to review and verify it. You can check it out on their GitHub.
Software Updates
Although software updates are essential for enhancing product quality, adding new features, and improving security, they also introduce potential risks and attack vectors. Cypherock’s novel decentralized architecture addresses this concern by distributing parts of private keys across five hardware components using Shamir Secret Sharing. This approach eliminates single points of failure, making it difficult to access a complete private key using just one device. Regardless of software updates, the security of the private key is maintained by keeping X1 cards permanently offline and only updating the X1 Vault.
Customer Support
If you need assistance or have questions, Cypherock offers multiple support channels. First, you’ll find a live chat box with a human representative on their main webpage. Additionally, you can join their Telegram group, where team members are available to respond to inquiries. Alternatively, you can reach out via email at support@cypherock.com. Before contacting support, be sure to check their Reddit AMA, as you might find answers to your questions there.
Aditional Features
Cypherock as a Wallet Aggregator
If you’re an experienced crypto user, you may often find yourself managing multiple portfolios across different wallets, which can become quite cumbersome. Cypherock offers a solution with its multi-wallet feature. From a single device, you can manage up to four separate wallets, each with its own seed phrases. This is particularly useful for handling different portfolios within one Cypherock device. For example, you can import all your tokens from MetaMask, Ledger, Trezor, and Phantom wallets.
Learn more about wallet aggregation here.
Cypherock Cover: A Non-Custodial Solution for Inheritance
To address the ever-present issue of inheritance in the crypto world, Cypherock is soon launching its cutting-edge, non-custodial, non-KYC, and censorship-resistant solution, Cypherock Cover. This solution was designed to protect digital assets from two major issues: inheritance and PIN loss. Cypherock Cover is expected to debut in Q4 2024, aiming to become the first hardware-based, multi-chain, interoperable solution for inheritance and digital asset recovery. Read more about Cypherock Cover here.
Areas for Improvement
The team at Cypherock has done an impressive job covering essential features and more, though there are still a few improvements I’d like to see. Support for Bitcoin Taproot addresses, for instance, would be a valuable addition. The team is aware of this, and voting is currently open for this feature here. Additionally, integration with popular software wallets like MetaMask would be extremely convenient. While over 9,000 cryptocurrencies are supported, notable assets like Cardano, Aptos, and Sui are still missing. I’m confident, however, that the team will address them in the coming months.
Conclusion
To sum up, the Cypherock X1 is a remarkable, secure, and user-friendly hardware wallet that takes an innovative approach to solving classic crypto challenges. Its decentralized seed storage via Shamir’s Secret Sharing, combined with open-source code, sets new security standards. The ability to manage multiple portfolios on a single device, along with the forthcoming inheritance solution, distinctly sets Cypherock apart from the competition. While some aspects could be improved, the Cypherock X1 remains an excellent choice for storing and protecting digital assets in a stress-free way. For those who prioritize security above all else, this wallet is a standout recommendation.
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Vedran Mijatovic