By Trustology, a company which was founded by researchers with previous experience in working with banks such as BNY Mellon, RBS and Barclays recently announced the launch of an iPhone-controlled crypto vault which it claims has a secure infrastructure sufficient for that of financial institutions.
The first version of TrustVault was announced on Wednesday, is now available for download via the Apple UK App Store and can be used to store Ethereum (ETH). Also on the horizon is support for Bitcoin and ERC-20 tokens which work upon Ethereum’s blockchain.
Trustology successfully completed an $8 million seeding round late last year which was facilitated by Ethereum design studio Consensys along with Two Sigma Ventures, the venture capital arm of Two Sigma Investments, the tech-driven subsidiary of the firm.
At first glance, TrustVault looks like just another crypto wallet phone application. However, there’s a lot behind the scene, a smart blend of hardware security modules (HSMs) managed by Trustology with verification processes distributed among individuals at secure data centres.
Alex Batlin, founder and CEO at Trustology explains:
“It allows you the ease of a mobile phone, but really what we always talk about is a TrustVault account. If you mention the phone, people think it’s just a phone app. But that’s a bit like saying my bank account is just the mobile bank app. It looks like a simple app, but the real power is in the service behind that.”
Much like a traditional bank, Trustology identifies any customers upfront, so should the phone be lost, the user account can be recovered with the company as the private keys to the crypto wallet are not stored on the device.
Despite the human element present during certain stages of the setup, this not your typical cold storage service. Assets can take up to 48 hours to be extracted according to Batlin.
As soon as a new user is onboard, Trustvault’s functionality, which almost entirely automated takes mere fractions of second to transfer funds:
“The problem with the person scenario is you absolutely reduce cyberattack, but you now increase the physical attack. Because in the end, an individual is just a very slow network connection.”
Blockchain Phones:
A myriad of blockchain phones have entered the market recently, the Samsung Galaxy S10, HTC’s Exodus 1 and Sirin Labs Finney all offer a means of storing keys.
Samsung itself boasts “defence-grade Samsung Knox,” and storage which is backed by hardware.
Batlin added that TrustVault is only compatible with iPhone devices as it’s currently the only smartphone with an enclave that is secure enough for a custody service of this nature.
He did, however, also add that Android compatibility is on the horizon via the recently released Google Pixel 3 phone.
He added:
“It has something called a Titan M chip which is very secure, more secure than the iPhone. So we will be working on an Android version, but it won’t be for every device; it will only be for the more secure ones.”
The Hardware:
Trustology has thrown everything into the hardware. Batlin stated:
“We took the tried and tested HSMs, which is what banks have been using for SWIFT network and many other very highly secure systems, but we customised the firmware.”
When the application is launched, a cryptographic private key is generated within the iPhone enclave, followed by the bank-grade know-your-customer (KYC) process which secures the non-extractable key to the user’s identity.
However, it must be noted this key is not the same one which controls user funds.
The following step users need to take is to create a key account with TrustVault. This takes the form of a request which is then signed by the private phone key. Following this, a private key is generated within the HSM as well as a “policy file” which is connected to the key within the device with the one inside the HSM.
Thereafter, the user’s public address becomes the equivalent of a bank account, stated Batlin.
He added:
“To move money you have to be able to sign the transaction with the key inside your phone and send it to us. We then load the appropriate policy file and then only if that key is mapped to the key inside the HSM do we re-sign that transaction with the real key inside the HSM.”
On top of the minimum viable product (MVP) which was launched yesterday, TrustVault is also available to financial institutions as a white-label service which can be offered to customers with Batlin adding that there is great interest from top-tier and mid-tier banking institutions.
On the horizon are many business models with the early adopter MVP fee only costing £4.99 a month.
ConsenSys founder, Joseph Lubin described Trustology in a statement as “industrial grade security, but available to anyone” and added:
“When it comes to crypto wallets, hot is the new cold.”
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