A long-standing debate in the crypto and blockchain spaces has been regarding the ease of use and convenience of centralized platforms vs. having user-owned-and-controlled wallets for storing and managing customer assets. If the primary motivation behind blockchain development is a desire to move from the risks and restrictions of centralized platforms to free, open, and decentralized ones, why are centralized exchanges (CEXs) still so popular, and why do many users prefer to use them over self-managing their assets?
For better or worse, the past decade has shown us that many users may not be ready to handle token transfers, storage, and security on their own. This explains the unrelenting popularity of centralized exchanges: they simplify everything for the user and handle all of the tech nitty-gritty on the users’ behalf. Unfortunately, security lapses, insider trading, and all forms of illicit and risky behavior (as proven by the FTX, Binance, Celsius and other scandals) prove that leaving user funds in large honeypots that are under the control of a handful of players can be extremely risky.
In an innovative move, the Cirus Foundation, a blockchain-based Web3 project, has partnered with Shift Markets, a leading developer of institutional-grade cryptocurrency trade and exchange infrastructure, to develop non-custodial wallets for use on the world’s leading global centralized exchange networks.
Shift Markets has developed proprietary solutions for dozens of crypto exchanges and digital asset trading platforms around the world. The company provides services to over 40 million people and is a recognized leader in the crypto and blockchain industry.
The hotly anticipated wallet from Cirus and Shift Markets will be a first-of-its-kind non-custodial wallet that provides end users with complete control of their assets while retaining the invaluable connection to centralized exchanges. In doing so, the initiative will allow users to continue benefiting from the ease of use of centralized platforms while circumventing the risks associated with centralized infrastructure.
Leaders at both Shift Markets and Cirus, including Shift Markets CEO and Co-Founder Ian McAfee and Cirus Founder Michael Luckhoo, said that recent developments – such as the FTX scandal and regulatory pushback to crypto progress – mean smarter and more secure solutions are needed if more users are to be onboarded for the crypto space to reach critical mass. Cirus’s non-custodial wallet has been under development for the past year and is set for testing in Q1, 2024. Mr. McAfee and Mr. Luckhoo said that the wallet will help resolve many of the inherent issues of centralized exchanges and help the industry move towards the Web3 philosophy on which it was founded.
The wallet will feature bleeding-edge Multi-Party-Computation (MPC) technology that eliminates the possibility of customer asset misappropriation and withdrawal issues by handing over asset ownership and control to the end users themselves. The initial wallet deployment will be via a desktop extension, similar to Metamask, and will include an account linking button for connecting to participating exchanges. Based on the results of testing and development, the wallet may also include features for high-frequency trades (which have less lag than on-chain transactions), lower gas costs, and many other benefits.
While the list of participating exchanges is yet to be announced, it is expected that the target market for the wallet will be no smaller than Shift Market’s current client base of approximately 40 million users.
It is expected that Cirus will enjoy a considerable first-mover advantage after deploying the new wallet as part of a larger Wallet-as-a-Service business unit since the solution provides users with sovereign asset control, sidesteps the many issues of centralization, and provides a workable solution for other industries as well when it comes to safeguarding user funds and delivering exceptional security, speeds, costs, and convenience.
While the formal rollout of the wallet is not expected for another few months, the concept of user-controlled wallets that work seamlessly with large, established exchanges is a major step forward for the crypto and blockchain spaces as a whole. With the combined convenience, security, performance, and cross-platform capabilities of the upcoming wallet, industry leaders expect it to significantly reduce entry barriers and accelerate adoption by users around the world.
Source: https://thenewscrypto.com/an-industry-first-cirus-and-shift-markets-develop-non-custodial-wallets-for-use-with-centralized-exchanges/