Gridlock, a fast-growing blockchain startup, has developed a social recovery wallet with cold-wallet and hot-wallet usability, so easy that anyone can keep their crypto safe.
Crypto wallet hacks have been a common point of contention since the birth of Bitcoin. With billions of dollars stolen over the years, the need for security over your assets becomes more and more apparent. Despite the crypto landscape maturing with more investment in the space over the past few years, losses appear to be an even more common occurrence. Better security needs to be a priority.
Gridlock has designed a crypto wallet that focuses on security. It's a new type of hot wallet with enhanced security functions. A user's private key is split into five pieces to eliminate any single point of failure. These are distributed between the user, Gridlock, and friends. Gridlock's new model shows that seed phrases are a dated concept. They are challenging to manage and a liability to the owner and their security. This risk is not the only concern with hot wallets but something that has continued to cause problems and millions in lost or stolen cryptocurrencies.
If a private key is held on any device connected to the internet, it is at risk. Experts notice this issue and often opt for hardware crypto wallets or 'cold storage' to remedy concerns about hacks. Cold storage is usually preferred because it is physical and disconnected from the internet, but there are still many risks with cold storage. For example, what happens if the cold wallet is destroyed? For those with cold storage, when was the last time you practiced recovery? Cold wallets work for those comfortable with complex technology, but it's risky and tedious to take on personal ownership of crypto security. Gridlock fixes that.
So, how does Gridlock crypto wallet combat the issues highlighted with existing methods of crypto storage? First, it's a mobile app for iOS and Android, meaning users can access their crypto anywhere and can recover to a new device in case of loss. Never again miss an important event because you cannot access your crypto. This may sound like a security flaw, but rest assured, only the device that the wallet is currently registered to can sign transactions.
In order to transfer a wallet to a new device or do anything involving account security, for that matter, the user needs permission from their friends (guardians). Social recovery is a feature that Ethereum founder Vitalik Buterin champions. However, it needs to be widely adopted in crypto wallets before the public can have safe and recoverable storage. Gridlock's social recovery techniques optimize the trend started by companies like Argent, whose Ethereum-only wallet has received some backlash. Gridlock crypto wallet offers flexibility and a variety of tokens.
Gridlock guardians have a host of features that make them ideal for security: social recovery, suspicious activity monitoring, and non-custodial key share hosting. With threshold signatures, a hacker must compromise multiple devices to steal funds because crypto keys are spread throughout their network. Only the network owner can bring together the pieces to make transactions.
Thanks to Guardian Recovery, any part of a Gridlock network can be recovered or replaced if it goes missing. The concept of key splitting has been seen before, like in Shamir's Secret Sharing. However, Gridlock raises a security flaw in these other technologies: the key is split in one location and then distributed. They fix this with Distributed Key Generation. Partial key generation occurs on each device, and all devices then communicate to derive the official crypto key. With this method, the key is never in one place, even during the initial generation.
Gridlock combines the positives of cold and hot wallets while eliminating the negatives. Could Gridlock have finally cracked the code on crypto security? The app is free to use, easy to use, and highlights simplicity as one of the core design concepts.
The CEO of Gridlock, Derek Rodriguez, shares how a personal loss of funds inspired him to start the company: "In 2009, I mined Bitcoin and lost what would be the equivalent of $3 million today." He goes on to say, "almost everyone I speak to has or knows someone who has lost their cryptocurrency. I wanted to design something that removes any single point of failure in security, and Gridlock does just that".
Gridlock crypto wallet currently offers storage of Ethereum, Solana, many ERC20 tokens, and even NFTs. Many more coins are coming in the near future and, of course, DeFi integration throughout the space. The team is working hard to bring this technology to the masses because it is exactly what the crypto world is missing.
Easy and secure ownership is needed in the crypto space and Gridlock has offered their solution.