Crypto exchange CoinDCX launches Okto, a keyless wallet for P2P trading

NEW DELHI: Centralized cryptocurrency exchange, CoinDCX, on Friday announced a new mobile wallet for peer-to-peer crypto token trading. Called “Okto,” the wallet will work on more than 20 blockchains and more than 100 decentralized finance (DeFi) protocols or crypto investment services, CoinDCX co-founder Neeraj Khandelwal announced.

According to CoinDCX, one of the main features of Okto is the ability to give its users the equivalent security of any other decentralized crypto wallet, without requiring them to remember a long and complicated key for the wallet.

While Okto was announced on Friday, users can only join a waitlist at this time. CoinDCX executives said the company would begin rolling out User Access “soon,” without offering a specific timeline for when the rollout would occur.

Vivek Gupta, executive vice president of engineering at CoinDCX, confirmed that Okto will start with blockchain support and a limited set of DeFi protocols, but said the services would be expanded “quickly.”

“A lot of web3 investment tools today are complicated, which automatically deters users from investing in this space. For example, in typical DeFi wallets, having to memorize and write down a long, complicated key might not be conducive to the use of crypto in the consumer space – which the wallet’s keyless access system could help address,” said Gaurav Arora, senior vice president at CoinDCX.

“DeFi”, or decentralized finance, refers to financial transactions that are carried out between a sender and a receiver without the intervention of a third party – a bank, in the conventional sense. In web3, platforms usually use a decentralized server system, which is a blockchain, to offer peer-to-peer (P2P) funding tools such as lending or trading.

These transactions are typically handled by smart contracts, which are algorithms that run automatically once a borrowing or lending criterion between two users in a transaction is met. Until filled, the tokens are held under contract, forming a pool of liquidity – which crypto users around the world can use for various DeFi applications.

Arora added that to provide security in Okto, the service uses multi-party computing (MPC). The latter is a cryptographic technology where the execution and verification of a code is distributed over several devices. Theoretically, this means that services using MPC cannot be breached by simply accessing one of the devices that could authenticate access to the service – in this case, Okto.

“One of the main reasons for many DeFi breaches is lost or stolen wallet keys. If you remove human access to keys and decentralize its storage, it should make your wallet much more secure,” Arora said.

Admittedly, Okto is not the first keyless DeFi wallet of its kind. Zengo is one of the most popular examples of keyless DeFi wallets and offers a similar use case to Okto. Another example is US-based DeFi wallet service provider Vertalo.

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