Paris-based crypto security firm Dfns has announced its plans to incorporate biometric identification into its wallet-as-a-service toolkit. This development will enable crypto developers to create wallets that use Face ID, fingerprint scanners, and other biometrics to secure user funds.
The collapse of the FTX exchange last year, along with several similar incidents, has reinforced the idea that storing crypto in a personal wallet is the safest option, instead of entrusting it to an exchange or custodian. Despite this, many people continue to store their funds with companies like Coinbase and Binance. One of the main reasons for this reluctance to switch to personal wallets is that they can be inconvenient to use, often relying on private keys made up of lengthy strings of letters and numbers.
The biometric feature in Dfns’ wallet suite relies on the open-source WebAuthn standard. It enables users to authenticate themselves without directly sharing their biometric data with third parties, as all the data is saved on the user’s phone.
This trend of incorporating biometric support into crypto wallets appears to be gaining traction. For instance, Coinbase, the popular exchange and wallet provider, has also expressed its intention to add this feature to its wallet-as-a-service suite.
However, Hagège emphasizes that the Dfns setup is fundamentally different from the likes of Coinbase and other wallet services. While these companies typically use multi-party computation (MPC) to secure private keys, Dfns employs a delegated security technique. By utilizing this method, the private key is split across a distributed network of nodes rather than shared between a single user and a service provider. According to Hagège, this approach results in more secure wallets, less vulnerability to downtime, and increased regulatory compliance.
In conclusion, the integration of biometric identification into wallet services like Dfns could potentially revolutionize the world of cryptocurrencies, making them more accessible to new users. As more companies follow suit, the mainstream adoption of crypto wallets might become an increasingly viable option for those looking for a balance between user-friendliness and enhanced security.