UNIDO private key management and Hypersign’s DID infrastructure to provide enterprises with secure identity and access management.
Institutional interest in the blockchain and cryptocurrency industry is old news by now. Last year, the OCC allowed banks to provide custody of these digital assets and even former Bitcoin detractors such as J.P. Morgan have jumped in on the potential of these services.
Likewise, established fintech companies such as PayPal have started to look into security solutions that will become necessary as it expands its services into crypto payments. The company recently acquired an Israeli security firm in an effort to meet these needs.
This is telling. The ongoing infrastructure issues relating to security and governance have kept many companies and asset management firms on the fence when it comes to their participation in the blockchain industry and its most promising sector, decentralized finance. Data aggregator DeFi Pulse now marks the total value locked into these applications at over $76 billion. More than a ten-fold increase from $600 million only a year ago.
For most businesses and institutions, however, the current solutions for private key management in the space are not safe enough. They require better custody services before taking a step into these promising new markets. Blockchain enterprise platform Unido and the Hypersign protocol have recently partnered to provide such a solution. Both companies’ technology can be used in combination to streamline multi-party authentication and provide the kind of custody services that larger investors need.
Established by a veteran team of ex-Goldman Sachs and Enterprise Technology executives in 2017, Unido enables institutions and corporate clients to securely store, manage and invest their crypto assets into decentralized finance networks. Hypersign, on the other hand, is a simple-to-use authentication and security solution developed by Hypermine Labs.
Unido’s proprietary key management solution prevents users from losing, corrupting or compromising their mnemonics and private keys using technology known as multiparty computation or MPC. It works by breaking up private keys, encrypting them and sharing them with multiple parties. This vastly reduces the chances of the key being lost or stolen and allows multiple members to have different levels of access and usage rights to a wallet or account.
In tandem with these features, the platform will now be able to take advantage of Hypersign’s Cross-chain DID Infrastructure. This will allow it to implement enterprise-grade access management tools and features for its users. While existing applications use third-parties services like OTP-based authentication or social logins such as Facebook or Google, Hypersign takes a different approach to user-level security, authentication, verification and authorization of user data. It relies on a combination of decentralized identifiers and public key infrastructure to improve upon these models.
By working together, Unido and Hypersign could provide a viable solution to the security and custody issues that hinder the decentralized finance markets. The partnership could be the missing piece for greater enterprise adoption, providing the assurances that some conservative investors need before joining the space.
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