The blockchain industry is in dire need of solutions to be applied to password systems that are more pragmatic than current ones. That's why the San Francisco-based startup Magic has just raised $ 4 million from investors like Naval Ravikant, SV Angel, Placeholder, Lightspeed Venture Partners and Volt Capital, to name a few. SV Angel in particular has a complementary portfolio, including Coinbase, Stripe, Airbnb and Doordash.
Personalized access without password
"Magic points the way to a world where user identity and authentication are decentralized and not subject to control by technology giants," said Ravikant in a press release.
In addition, the CEO of Magic Sean Li said that his startup already works with some decentralized exchanges (DEX) such as Uniswa, RadarRelay and Bitcoin system. Volt Capital, a member of the Chicago DeFi Alliance, also represents a strategic partnership.
Volt Capital partner Imran Khan said that Magic's password management service allows app developers to create personalized login experiences without touching the user's private keys.
More importantly, Khan added, Magic is aimed at customers beyond the cryptocurrency sector because it allows you to authenticate based on the protocol used by the platform. Placeholder Capital co-founder Joel Monegro added that companies are also looking for safe ways to guarantee employees remote access to authorized networks.
Monegro said that in the end, authentication is about making "key management" accessible. "This is a way for users to not have to give up their data," added Khan. "Magic is using blockchain as a back-end infrastructure, so that any platform can easily integrate."
Simplification of private keys
Taking a step back, private keys are basically very long and complicated passwords that users cannot restore. Most Internet users choose to rely on platforms like Facebook in exchange for the convenience of a simplified username and password, as well as the option to recover if they lose their password, rather than keeping full control over profile information. or good.
Magic aims to serve developers, especially decentralized application makers (dapp) from the ethereum community. Li estimated that 5.000 developers and teams are currently using the tool, including Democracy Earth and TokenSet.
"We can manage the keys within the browser without having to rely on Chrome extensions," said Li. He said the startup is on track to earn over $ 500.000 in revenue this year despite the recession.
And with an offer aimed at customers in the portfolio sector, service providers and apps, Li instead bets on selling to companies that already have a user base rather than having to attract their own audience to make a profit.