Cypherock X1 Review

By akohad Jan12,2024

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Seed phrase backups in the crypto space are a persistent concern, causing anxiety over potential loss or theft. Whether it’s the fear of losing a wallet or its backup, the vulnerability of the seed phrase on paper or metal poses a significant barrier to mass cold wallet and crypto adoption.

Many people have experienced financial losses due to crypto wallet hacks, even after taking precautions with seed phrase backups. Even though the common reason for crypto hacks is people using a software or “hot” wallet, which is always connected to the internet, even your traditional cold wallets could be hacked and your funds could be stolen. This is because they centralize your private keys. This means that the key to your crypto funds and assets is kept in one place alone.

The problem here is that if that wallet is broken into, your key will be exposed and your funds can be stolen. There have been instances in the past where popular hardware wallets like Ledger and Trezor security models were compromised. Leading security team Kraken Labs was even able to extract the private keys from Trezor wallets within 15 minutes of access to the wallet. Ledger’s security model was also broken by a 15-year-old in the past.

Inheritance is another challenge in the crypto space. The question of “What happens when we die?” is always interesting. Relying on wills and third-party legal experts to pass on your seed phrase backups to your descendants introduces trust issues. This restricts you to not being completely trustless as your financials are at stake.

Given these challenges, entering the crypto world becomes hard and daunting for the average user. However, what if I tell you there’s a wallet in the market that addresses all these concerns by decentralizing private keys, eliminating the need for insecure seed phrase backups like paper or metal, and addressing inheritance issues?

The Cypherock X1 is the World’s first hardware wallet without the need for a seed phrase backup. Cypherock X1 wallet comes with five hardware components: one X1 Vault and four X1 Cards. The X1 Vault, with its OLED display and joystick, guarantees a user-friendly experience for transaction verification and offline signing. Complementing this, the X1 Cards are NFC-based smartcards featuring EAL 6+ secure elements, enhancing the overall security of the Cypherock X1 system. This innovative solution decentralizes the Crypto private keys by splitting them into multiple parts cryptographically and storing them in multiple tamper-proof hardware. The user needs just the X1 vault and any one of the cards to authorize a transaction. The assets are still safe even if the user loses any three of these five components.

Cypherock is soon going to launch a non-custodial beneficiary service for the Cypherock X1 that will allow users to transfer their digital assets to their loved ones without compromising the privacy and control of the Crypto assets.

Whether you’re new to crypto and seeking peace of mind for your assets or an experienced HODLer juggling multiple wallets, Cypherock X1 stands as a fantastic security solution. It eliminates the risks associated with paper or metal backups, offering a simple yet secure way to manage your keys. With Cypherock X1, the fear of losing your Crypto private keys becomes a thing of the past, making it a dependable companion for all levels of crypto users. Be your own bank with pure peace of mind.

  • Cypherock X1 is the world’s first hardware wallet eliminating the need for seed phrase backups. It decentralizes private keys by cryptographically splitting them into multiple parts, offering a secure solution without the risk of paper or metal backups.
  • Cypherock X1 vault is fully open source and it is securely audited by KeyLabs and scrutinized by WalletScrutiny. Keylabs is a security firm that has found vulnerabilities in Ledger and Trezor hardware wallets before.
  • Cypherock X1 has a unique and effective design — 1 X1 Vault and 4 X1 Cards. X1 Vault has a dual-chip architecture for offline computation & verification. It comes with an OLED display and joystick, making it easy to verify and sign transactions offline. X1 Cards are NFC-based smartcards with EAL 6+ secure elements. They have the same secure hardware as that of your bank’s credit card!
  • Store 3000+ coins and tokens, and track and manage portfolios in the CySync app. Simply connect your Cypherock X1 cold wallet via WalletConnect seamlessly and use it with your favorite dApps for doing things around NFT and DeFi.
  • Secure multiple seed phrases inside the same Cypherock X1. Cypherock X1 is not just a cold wallet. It can be used as a seed phrase vault for your other wallets like Ledger, Trezor, Metamask, and other popular wallets. Use Cypherock X1 to import and store/backup up to 4 seed phrases from different wallets.
  • Manage all your Crypto wallets through a single app. Track your entire crypto portfolio across every wallet you own in cySync. Manage all your private keys and sign transactions in one app.
  • Cypherock is soon going to launch an inheritance service that allows the user to transfer their digital assets to their loved ones without compromising privacy and control of the assets.

Decentralized key storage

Cypherock X1 sets itself apart from other crypto wallets by not centralizing your private keys. Instead, it decentralizes them, providing 10x more security. This involves splitting your keys into five parts, securely stored in different tamper-proof hardware and each hardware can further have an additional layer of security through a user-set PIN. The best part? You only need two out of these five parts to authorize a transaction. Even if three parts are lost, you can still recover your private keys. This approach enhances security eliminating the single point of failure, a risk present in other wallets.

KeyLabs, the same security firm that found vulnerabilities in Trezor and Ledger, has audited Cypherock X1. Additionally, WalletScrutiny has scrutinized and certified its firmware as ‘reproducible.’ Rest assured, your crypto is in safe hands with Cypherock. Both the audit report and scrutiny report and publically available.

No more paper backups

Seed phrases can be a headache, exposing one’s crypto to trust issues, hacks, thefts, and natural disasters. The magic with Cypherock X1 is that you just need any two out of the five parts to construct your private keys to authorize a transaction. This makes the private key secure without a single point of failure, eliminating the need for backing it up. It’s a straightforward and stress-free solution for users. Although the Cypherock X1 still allows the user who is paranoid about safeguarding their seed phrases to view the seed phrase through an option and back it up separately.

More than 3000+ crypto assets supported

With 3000+ assets and 10 different Blockchains supported, Cypherock X1 already offers one of the most exhaustive support for different coins & tokens.

Support for Defi and NFTs through WalletConnect

Through Wallet Connect, Cypherock users can participate in the world of decentralized finance. Just connect your Cypherock X1 via WalletConnect and engage with your favorite dApps related to DeFi and NFTs. Here is a video tutorial for DeFi and here is a video tutorial for NFTs of the same.

Open source with Secure Elements

The Cypherock X1 vault is fully open source and the X1 Vault is used for performing operations and computations. The X1 Cards have EAL 6+ secure elements for best-in-class security.

Factor Authentication

Cypherock X1 employs 3-factor authentication for robust security. The X1 Vault, tapping of the X1 Card, and a user-set PIN work together seamlessly, providing strong protection against unauthorized access.

Stress-Free Wallet Updates

Enjoy hassle-free wallet updates with Cypherock X1’s secure design. Traditional wallets, both hot and cold, risk crypto theft during software updates, as malicious updates target locally stored private keys.

Cypherock’s robust architecture secures funds at an architectural level, protecting against compromise through decentralized private key management. Only the X1 Vault can be software-updated, while the X1 Cards remain non-upgradable and cold. This ensures improvements to the X1 vault without compromising your private keys. The shared private keys are never permanently stored on upgradable hardware (the X1 vault), thus guaranteeing user confidence.

Cypherock’s open-source nature, with firmware builds verified by Wallet Scrutiny, ensures transparency and authenticity, further solidifying its commitment to user security.

Four hardware wallets in one wallet

Unlike other hardware wallets where you get one wallet account per hardware, you can create 4 different wallet accounts in a single Cypherock X1. Use one wallet account for storing NFTs and maybe use another one for storing just Bitcoins. This way you can seamlessly diversify your crypto!

Secure Seed Phrase Vault

Say Goodbye to insecure wallet backup solutions like a paper or metal plate. Cypherock X1 can also function as a seed phrase backup for your other Crypto wallets like Ledger, Trezor, Metamask, and other popular wallets. You can read about it more here — https://cypherock.com/wallet-backup.

Aggregated Crypto Portfolio Management

The cySync companion app streamlines your crypto portfolio management with Cypherock X1. Manage and monitor your entire crypto portfolio across different wallets like Ledger, Metamask, etc. by securely storing the seed phrases in your Cypherock X1. You can read more about it here — https://cypherock.com/portfolio-management

Onboarding

The Cypherock X1 vault stands out with its ergonomic design that combines style with functionality. Featuring a user-friendly joystick for intuitive navigation, the device tends to ensure a seamless and enjoyable user experience.

To initiate the onboarding process, users need to install the cySync companion app on their PC and connect the X1 vault. The cySync app serves as a guiding light throughout onboarding, prompting users to set a password for the app. Forgetting this password requires an app reset but it won’t compromise the users’ crypto assets.

Enhancing security, users can set up an email-based 2-factor authentication by providing an email ID. Upon completing onboarding, users receive an email with authenticity results of their Cypherock X1 directly from Cypherock’s server, reducing dependence on the cySync app alone.

Authentication and pairing of X1 cards with the vault become a breeze — a simple tap on each card completes the setup.

You still have to create wallets and add accounts to be able to send and receive crypto which can be done by clicking on the Generate New Wallet option on the X1 vault.

Users can also add a PIN to protect this wallet so that if a malicious advisory compromises two of your five parts, your funds remain safe. This PIN encrypts the part of your private key stored inside each of the parts. Once set, the PIN cannot be changed; you will have to delete the wallet and create it again to change the PIN. The PIN can be alphanumeric and must be 4–8 characters long.

Cypherock X1 will generate a truly random 12–24 word BIP-39 seed phrase for your wallet. Once you’ve finished setting up and generating a new wallet, the Cypherock X1 utilizes two out of five Shamir’s Secret Sharing to decentralize and distribute your private key into five cryptographic parts.

Each of these five parts is securely stored across five tamper-proof hardware components, which are four X1 cards, and an X1 vault, which serves as the device with a built-in screen. Thus, by decentralizing the storage of your private key, Cypherock X1 enhances your crypto security.

You only need two out of the five individual parts (any X1 card and the X1 vault) to make a transaction or to view your seed phrase.

Sending and receiving coins

Now to receive crypto from your friends all you have to do is fetch the receive address from the cySync app and send that address to your friend for sending you crypto. To verify the address that’s shown on the cySync app, just connect your X1 vault and tap any of the four X1 cards on it.

For sending coins from your account to your friend, get the receiver’s address from your friend and paste that on the cySync app, depending on the coin, enter the amount you want to send. The cySync app and the X1 vault will show the transaction details that include the amount, and address you’re sending to on its trusted display which you should verify, you should only indulge in clear signing the transaction. Then just enter the wallet’s PIN and tap any one of the four X1 cards below the X1 vault to sign the transaction, the cySync app will broadcast the signed transaction to the blockchain and yeah, you’re good to go.

Seed phrase recovery and backup

The Cypherock X1 offers users the ability to reconstruct the original seed or master private key using a two-of-five threshold scheme, which means that even if a user loses up to three of the five parts (let it be 3 cards or 2 cards and the X1 vault) a user will still be able to recover their seed by just using any two parts (2 X1 cards or 1 X1 card and the X1 vault).

To do this, just select the View Seed option, enter the PIN of the wallet’s seed phrase you want to view, and then tap any one of the X1 cards on the X1 vault. This functionality allows users to transfer the wallet associated with this seed phrase to another hot or cold crypto wallet of their choice, provided it is also BIP39 compatible. Additionally, users have the option to import their seed phrase into Cypherock X1, as it supports seed phrases of 12, 18, or 24 words.

This robust design ensures that even if a user were to lose one or two parts, such as a card or the vault, they would not lose access to their funds.

Most wallets out there in the market have 2 single points of failure. The wallets themselves store your private key in a centralized way, that is on the device itself, this doesn’t protect your crypto from loss or theft. For the same reason, they engage you and you are forced to back up your wallet seed phrase on a piece of paper which also faces similar problems if not more. If you lose access to them, if they get damaged, or if someone gains access, your crypto funds and assets are gone forever.

Unlike other hardware wallets, Cypherock X1 protects your crypto assets by decentralizing your keys and seed phrases into multiple parts, each stored on a separate tamper-proof hardware component for 10x protection. You and only you control these tamper-proof hardware components. Once set up, just by storing and distributing each part (the X1 cards and the X1 vault) in different locations, you are making it nearly impossible for anyone to steal your funds.

Lose a part? Not a problem as you only need two to gain access to your crypto. You can lose up to three parts and still have access to your Crypto from your remaining two parts. Even if someone gets access to any two of the cards, you still won’t lose any funds to theft as each part is being stored in an encrypted and PIN-protected form.

If you do lose a part or have one stolen, you can replace it easily by just buying a replacement for the lost X1 Vault or the X1 Cards.

This backup strategy eliminates the need for manually transcribing the seed phrase onto physical objects like paper or metal plates, where the seed phrase would be stored in an unprotected and unencrypted form. This design solves the problem of a single point of failure as you don’t have to keep a seed phrase backup as you can always view your seed phrase whenever you want by just having access to any of the two out of five parts. It also solves another single point of failure which is the crypto wallet itself by decentralizing your private key storage. This way even if you lose a part, you won’t lose your assets, and also a malicious adversary will never be able to extract your private keys from a single part.

The robust design extends to stress-free wallet updates. Software and hardware wallets store your private key locally, which can be exploited through software updates to steal your funds. This vulnerability comes from having the private key stored in a single place, making it a single point of failure.

For example, if you are using a closed source wallet like Ledger and if Ledger themselves or some malicious advisory somehow manages to push a software update to all the Ledger wallets (which is very much possible if you are aware of the recent Ledger hack), upon updating your Ledger wallet, all of your funds and assets can be stolen. This is because your private key is stored within the Ledger wallet itself. Something like this could also happen with open-source wallets.

In contrast to the traditional wallets, any updates Cypherock publishes to the X1 Vault will only affect the X1 Vault and not the X1 Cards. The X1 cards are never upgradeable and will always remain cold. Since the private keys are shared among the X1 vault and the four X1 cards and are never permanently stored on upgradable hardware (the X1 vault), this feature enhances the ability of X1 Vault to support new coins and features without ever having to worry about a user’s private key being compromised.

Additionally, the Cypherock X1 vault is also completely open source and has had its firmware builds verified by Wallet Scrutiny which checks that the same open-source code is the one running on the hardware.

In contrast to numerous other hardware wallets, the Cypherock X1 provides users with the capability to store and securely manage up to four distinct BIP-39 wallets. The Cypherock X1 is not only a fantastic hardware wallet but also a seed phrase backup. You can create up to four different wallets and use them separately on the wallet or you can also import the seed phrases from your other existing hot or cold wallets like MetaMask, Ledger, Trezor, and more to secure it.

This functionality proves to be a treat for individuals who possess multiple wallets, as it eliminates the necessity for users to uphold multiple separate pieces of paper or metal backups for each of their seed phrases.

In this way, the Cypherock X1 wallet provides users with the flexibility to use the device either as a personal hardware crypto wallet or as a dedicated seed phrase backup manager for other wallets, making it a versatile and secure option for safeguarding cryptocurrency assets.

When it comes to choosing a hardware wallet for securing your crypto there are a few non-negotiables to enhance the users’ security and here’s how we compare to other wallets out there in the market.

Starting off, Cypherock X1 vault is fully open-source. This means we are completely transparent about what’s running on your Cypherock X1. This allows the community to explore and scrutinize the code, spot any bugs or issues, and hold the company accountable.

This is so important because it lets you check if there is a backdoor built into your code. In wallets like Ledger which runs closed-source software they could add malicious code or a backdoor to extract your private keys and their users would even know. Ledger recently announced their Ledger Recover service which lets them extract your seed phrase from the Ledger device. The community’s response was unfavorable, raising suspicions within the Ledger user and broader crypto community that Ledger might have always had a backdoor to extract private keys, but due to the closed-source nature of their code, no one could verify it.

It is always better to stay cautious and opt for a wallet whose code can be verified by yourself to stay safe and secure your assets.

Another important necessity for a hardware wallet is having an on-device display. This is a crucial aspect of hardware wallets because when paired with clear signing support, it allows the users to visually verify the transaction details before signing and confirming the transactions. On wallets like Tangem, in which you don’t have a display, the users are forced to rely on Tangem’s companion mobile app to review and verify transaction details like the amount and recipient address. The Tangem companion app can be technically compromised and this makes the Tangem wallet vulnerable to remote attacks like spoofing, phishing, or some other social engineering attacks. Cypherock sees through this possibility and mitigates such risks by opting to integrate a trusted display on the Cypherock X1 hence reducing the attack surface.

When compared to other popular hardware wallets like the Trezor which is single chip based. The Cypherock X1 comes with a dual-chip architecture, that is the X1 vault consists of a built-in ATECC608 secure element (SE) chip along with its STM32L4 microcontroller unit (MCU). The X1 cards are encrypted NFC-based smartcards with EAL 6+ secure elements. They have the same secure hardware as that

of your bank’s credit card! This SE provides an extra layer of security against hardware attacks.

By incorporating such important and necessary features, the Cypherock X1 stands out in terms of security when compared to other popular wallets in the market.

FAQs (Frequently Asked Questions)

What happens if Cypherock goes out of business?
There are a few cases and features that take care of the users even if the company goes out of business:

1. Cypherock X1 is an open-source product that lets developers build on top. So, even if the company goes bust the software survives for eternity.

2. Cypherock X1 allows users to be able to view the seed phrase of any of the wallets that are currently being secured. Therefore, having the X1 Vault and any one of the X1 Cards in possession, a user can view the seed phrase and transfer assets to another Crypto wallet of their choosing, which is BIP39 compatible. To view the seed phrase, you don’t even need to connect it to the cySync desktop app. You can view the seed phrase by connecting the device to a power bank as well.

3. In case Cypherock goes out of business and the user also breaks the X1 Vault, Cypherock will soon be releasing an open-source Android and IOS app that will allow the user to tap their X1 cards directly on an NFC-enabled smartphone to recover the seed phrase by entering the PIN and using any 2 X1 Cards.

Can I buy an extra set of X1 cards separately?

Certainly! Users have the option to purchase an extra set of X1 Cards separately. Your old X1 Vault can be synced with this new X1 Cards as well.

Can I buy an extra X1 vault separately?

Users have the option to purchase an extra X1 Vault separately. Your old X1 Cards can be synced with this new X1 Vault as well.

Does Cypherock X1 have a mobile app?

As of now, Cypherock X1 lacks a mobile app for iOS or Android. There will be a mobile app launch soon.

What if my PC is hacked? Can my assets stored on the Cypherock X1 be compromised?

No, the private keys are always offline in Cypherock X1. Even if your PC has been infected with a virus, a hacker or the virus can’t compromise your Cypherock X1.

You can find more FAQs on the official Cypherock FAQs page.

User Experience and Integrations

Cypherock review: Platforms and Compatibility

cySync app is available for Windows, Mac, and Linux, and the Mobile app launch coming soon for Android & IOS.

Here’s how Cypherock X1 simplifies your crypto life

No seed phrase stress: Ditch the backup worries! Cypherock X1 uses Shamir’s Secret Sharing, splitting your private key across five secure tamper-proof hardware, four X1 Cards, and the X1 vault which is the main device itself. Even if you lose a card or the Xq vault, your funds are safe.

Customer Life Made Easy

Intuitive interface: No technical expertise is required, Cypherock X1 and cySync companion app guides you through every step with clear visuals and simple instructions.

Secure transactions: Tap and go with confidence, knowing your funds are protected by industry-leading security protocols.

Peace of mind: Forget the worry of lost seed phrases or passwords. Cypherock X1 puts you in control, with convenient access and robust security.

Evolving ecosystem: Cypherock is committed to continuous improvement, adding new features and integrations to constantly enhance your crypto experience.

Integrations

The cySync app, along with the Cypherock X1 wallet, facilitates easy management of your crypto portfolio.

Users can also seamlessly interact with NFTs and DeFi on Cypherock X1 through WalletConnect.

Cypherock supports an impressive 3,000+ assets with majors like Bitcoin, Ethereum, Polygon, and Avalanche being covered, along with plenty of small-cap coins.

The ERC20 ecosystem is well covered and the Cypherock is capable of storing thousands of assets, so there are no low memory issues here. You can find a full list on the Cypherock Coin Support Page.

Performance and Security

The Cypherock X1 features robust hardware security, incorporating a 32-bit STM32 ARM Cortex M4 for the CPU, along with ATECC608A and NXP JCOP3 secure elements for the X1 vault and X1 cards, respectively.

The X1 cards showcase exceptional durability, supporting a minimum of 500,000 taps on the X1 vault. Adding an extra layer of security, these cards house EAL 6+ certified secure elements, delivering a bank-grade level of protection for your digital assets. Additionally, the X1 Card stands out in terms of data persistence, with a retention capability of at least 20 years, resembling a personal Fort Knox for your digital assets. These features collectively contribute to a high-performing and secure experience with Cypherock X1.

Cypherock X1 is also backed by a 1-year electronics warranty, and a 7-day replacement guarantee, further solidifying its commitment to user satisfaction and security.

When a wallet gets audited and scrutinized, it’s like giving it a strict security check to ensure that the wallet is legit, transparent, and trustworthy. Cypherock has taken important steps and measures to secure your crypto funds by undergoing security audits and scrutiny.

Cypherock X1 is audited by the same team that discovered vulnerabilities in Ledger & Trezor, Keylabs. Keylabs is an industry leader when it comes to hardware security and they’re the same team behind WALLET.FAIL. The audit report is publicly available.

The Cypherock X1 is also successfully scrutinized by WalletScrutiny. This means that the code of the published software is verified and reproducible and confirms that the Cypherock X1 is truly open-source and secure. The scrutiny report is also publicly available.

Cypherock Review: Products and Pricing

Cypherock offers three different purchase options.

Cypherock X1 (X1 Vault + Cards) : $159.00

Ideal for newcomers or those purchasing the Cypherock X1 for the first time. This comprehensive package includes both the X1 Vault and X1 Cards, providing a complete solution for secure storage and management of digital assets.

X1 Vault : $129.00

This is for anyone who lost or damaged their X1 vault. By opting for this option, users can acquire the X1 Vault separately and seamlessly recover and import their seed phrases and private keys using any two of their existing X1 cards.

X1 Cards : $89.00

This is for anyone who lost or wants extra X1 cards. You can buy the X1 cards separately and sync them with your X1 vault.

Cypherock X1 Pros and Cons

Pros

  • Supports more than 3000+ crypto assets, coins, assets, and networks.
  • Audited and scrutinized by leading security firms.
  • Good form factor.
  • Fully open source.
  • Seed phrases and private keys are decentralized.
  • No seed phrase backup is required.
  • Supports multiple wallets.
  • EAL 6+ certified secure element.
  • NFC-enabled for quick operations.
  • Dapp connectivity is supported through WalletConnect.

Cons

  • Not compatible with MetaMask yet.
  • Smaller screen size compared to other hardware wallets.
  • May be costlier than some of the other wallets.

Cypherock Review: Conclusion

Well, if you’ve made it this far in the review, it is clear that Cypherock truly is an impressive piece of tech and a revolution in crypto security. Removing the single point of failure risk with recovery phrases is a huge game changer and the fact that the device can be used as both a portfolio manager and a vault to securely manage up to 4 wallets makes the life of a HODLer that much easier.

However, there are a few considerations to keep in mind while using the Cypherock X1. If you choose to set a PIN for your wallet, be mindful that it creates a single point of failure. Forgetting or misplacing the PIN, even with all five shares, can result in being locked out without a seed phrase backup card or knowledge of the PIN. Additionally, it’s worth noting that the Cypherock X1 does not currently support multisig or PSBTs.

In conclusion, Cypherock X1 effectively addresses challenges related to seed phrase management in the crypto space, providing a comprehensive solution. Its innovative design, robust security features, and commitment to transparency make it an appealing choice for users seeking a secure and user-friendly hardware wallet. Despite considerations like MetaMask compatibility and screen size, which may pose challenges for some users, the overall strengths position Cypherock X1 as a notable player in the hardware wallet market. Users can expect heightened security, ease of use, and versatility, making Cypherock X1 a valuable asset for managing and securing crypto portfolios. As with any crypto product, users are advised to conduct thorough research and assess their specific needs before making a decision.

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By akohad

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