Kresus, a crypto wallet launched in Apple’s App Store is making waves in the cryptocurrency world. It is the first wallet that uses Amazon hardware security modules to ensure users don't need to interact with seed phrases or passwords. Kresus stores users' private keys on an Amazon Web Services (AWS) Hardware Security Module (HSM) and uses Magic links and two-factor authentication (2FA) to authenticate users.

Most crypto wallets require users to store a recovery phrase or seed words when setting up an account. If a user loses the phrase and their device crashes, their access to their account is gone for good. Kresus' wallet attempts to solve this problem with the help of the wallet infrastructure and software development kit (SDK) called "Magic", which is used to store the user's key on AWS, a computer specifically designed to keep highly sensitive information somewhere safe. Magic encrypts the user's key with a Master Key that can not leave the said module - in the same way a hardware wallet does. This eliminates the need for seed words or private keys.

Unlike centralized exchanges, Kresus does not use passwords to authenticate users since stealing password hashes is one of the most common hacker techniques for getting access to web accounts. Instead, it requires users to click a link from within an email every time they attempt to log in. It also uses 2FA to protect the account in case the user's email address is compromised. Moreover, users don't have to cut and paste crypto addresses on Kresus as they can register for a free .kresus domain name through Unstoppable Domains, which they can use to send crypto.

With such features, the Web3 app developer closed a $25 million funding round in March to support the development of its app. Kresus is not the only wallet to offer seedless onboarding through Magic SDK. Web3 gaming company Immutable is developing a seedless wallet called “Immutable Passport” that uses the same infrastructure. Passport will work on the Immutable X and Immutable zkEVM networks and will be used to onboard players of Immutable’s Web3 games.

Kresus offers an appealing solution from the unconvenient task of relying on seed phrases. It positively provide an extra layer of security for those who would like to keep their crypto holdings safe, relieving users from the anxiety of losing access to their accounts. Compared to keeping cryptocurrencies on an exchange, the wallet also absorbs a portion of the risk from potential theft, collapse or other unfortunate events. Furthermore, this wallet is beginner friendly, making it easier for users to encounter and handle the world of cryptocurrencies.



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