Just published, is an open source code for Libra’s first non-custodial wallet, this is two weeks after Facebook’s announcement. ZenGo, an Israeli startup had its developers recently release a keyless, non-custodial retail wallet.
Easily noticeable is that this is the first alternative to a proposed custodial wallet that will maintain oversight of user’s funds called the Calibra wallet. A Facebook subsidiary of the same name will develop the Calibra wallet and other financial services for the Libra currency. The chief, David Marcus had said he envisaged Libra-supporting wallets to come to market to compete with Calibra, and he has gotten a response so quickly.
Marcus took a shot at responding to some of the criticisms thrown at Libra through a note published today on Facebook saying “You’ll be able to use a range of custodial and non-custodial wallets that will have full interoperability with one another, meaning you’ll be able to pay and receive payments across wallets from different companies, or use a software wallet you’d operate on your own.” ZenGo’s announcement confirms his claim, but Marcus also said, “Facebook won’t have any special responsibility over the Libra Network. But we hope that people will respond favorably to the Calibra wallet.” From a tweet via their official account, ZenGo wrote: ‘Official announcement: We are excited to introduce the first non-custodial wallet for @Libra_ (testnet) in open-source…‘
The wallet from ZenGo is currently available only on the Libra testnet, without a user interface. This product will instead ensure complete user control over funds and the wallet will be keyless by drawing on a Threshold Signatures Scheme (TSS). Notable is that user’s authority is maintained by TSS because transactions can only be initiated by the user, and can never be modified by the co-signer.
ZenGo will take on the onus of co-signer with the user, bringing together constituent parts of a fully secured cryptographic key. Since users maintain control over their private key this closes loopholes for hackers or cyber thieves.
ZenGo CEO Ouriel Ohayon said, “The idea here is to offload the burden of key management from the user. If Libra is going to become a widely adopted coin there is no way a mainstream audience will know how to deal with back-up and key recovery, or even multi-signature set up,” adding that “By providing a TSS based wallet users will enjoy a custodian grade experience but without the complexities of Self Custodian Wallet.”
The Calibra wallet will likely be password protected, subject to strict KYC regulations, and subject to Facebook’s proprietary orders even though it has not been released yet. Non-custodial wallets are not regarded as money services businesses and therefore do not require KYC protocols for now according to the Financial Crimes Enforcement Network ruling. ZenGo’s existing platform will incorporate the wallet and will be capable of holding multiple assets.
For further decentralize key ownership and increased wallet security, Ohayon said it will render support. “Libra code is extremely sophisticated and well documented… Of course, there are limitations and some unknown imperfections. They will have to strive for more decentralization and more privacy. We believe this will be possible to contribute in that direction. That’s why we chose to build from day one on it,” Ohayon said.
Credits – Daniel KuhnJOIN OUR COMMUNITY