The Cardano developer team (Input Output Hong Kong, IOHK) is developing and launching a new lightweight multi-chain crypto wallet, Lace. The main goal of the developers is to make Lace a seamless connection between Web2 and Web3 using a single interface. Charles Hoskinson, co-founder of Cardano, says he is confident in the long-term success of the security features of the new Lace wallet.
In his latest YouTube update, Hoskinson noted that the recent breach of password management application LastPass has left him dumbfounded by the security vulnerabilities in many Web2 and Web3 applications. LastPass announced via an official blog post last week that there has been a hack into its third-party cloud-based storage service.
According to the Password Management Platform, the company backs up production data archives with this service. The company's CEO, Karim Toubba, explained how the hacker gained unauthorized access. Toubba said the hacker had illegal access to user data and relevant metadata such as IP addresses, usernames and billing addresses through which they entered LastPass.
However, Hoskinson blamed LastPass for the security breach, calling it a "mistake" before adding that what happened was "pretty dirty." According to Hoskinson, LastPass's encryption model is antiquated, while she expected them to have updated their security protocols.
The Cardano CEO further said that it would have been better if an encryption program, especially Pretty Good Privacy (PGP), had been standard. Then, Hoskinson boasted that once Lace wallet supports PGP encryption, he will put $XNUMX million worth of ADA into a PGP-encrypted paper wallet and post the details on Twitter to see who can crack it.
He added that he is sure no one would be able to crack it thanks to the high security standards of PGP encryption. Hoskinson also argued that master passwords are now a "dead standard" that no one should use anymore.
A better solution
According to an article by Cardano explorer, the IOG team will integrate the Lace wallet with an identity management solution to allow users to create a customized decentralized identity (DID). The IOG team explained that a DID could serve as an official identity card for various institutions once they authenticate it. Thanks to this DID, users can better control their private data and decide which ones to release to third parties.
In this way, users can use a wallet as an id and as a store of values, such as money and tokens. Also, they can manage the service subscriptions, coupons, ownership rights and other vital data from this wallet. The launch of a new security feature by the IOG team will further increase the development activities of the Cardano ecosystem and the use cases of its native token, ADA (quotation in real time). As a result, the price of ADA may increase due to more projects on the network.