Blockchain Startup Launches ‘Chill Storage’ Crypto Wallet With No Private Keys

blockchain startup ZenGo crypto wallet cryptocurrency

An Israeli blockchain startup has launched a new non-custodial wallet service without private keys, offering what has been dubbed as “chill storage” for cryptocurrency users and investors.

Tel Aviv firm ZenGo unveiled its plans this week, in what is regarded as a first for the cryptocurrency sector. The new wallet will have no keys, no points of failure and no passwords, while still offering a custodian-level secure experience.

The firm brings the technology to market following last year’s successful $4-million funding round, which saw contributions from the likes of Samsung, Zcash and Benson Oak, among others.

Pitching its “decentralized security protocols” at consumers looking for security with simplicity, ZenGo said its product makes dealing in cryptocurrency much more secure than at present.

Co-founder Ouriel Ohayon described how the technology offers a third way between hot and cold storage for non-custodial cryptocurrency holdings.

“This is the first secure user controlled crypto wallet which can be adopted and used by anyone, removing the typical friction points you find in alternative solutions ... Until now users had the choice between two poisons: be their own bank at the cost of complexity, human errors or hacks or trust a third party blindly (which they chose by default because it’s just easier but then lose total control).”

According to Ohayon, the idea for the new wallet was born out of frustration with the existing solutions on the market, which he describes as “overwhelming and tedious” for new users.

Instead, ZenGo promises a wallet that is easy to set up and simple to use, without compromising functionality.

“Once we knew we could take the core principles of threshold cryptography and distributed computation and make it highly performant on the mobile, we knew we could build a step function improvement to whatever was existing.”

The product is available on a lifetime free of charge basis to early adopters, with plans to phase in a monthly subscription charge for new users at a later date.

With security a perennial concern for business and retail cryptocurrency users, it remains to be seen whether the ZenGo wallet delivers an optimal third option for cryptocurrency wallet users.