Ethereum Magic startup`Passwordless Login'Raises $4M From Naval Ravikant
Ethereum Magic startup has raised $4 million to make crypto less difficult from investors like Naval Ravikant, SV Angel, Placeholder and Volt Capital.
The blockchain industry desperately wants a crypto solution that isn't such a headache. That's why San Francisco-based startup Magic raised an initial $4 million from investors such as Naval Ravikant, SV Angel, Placeholder, Lightspeed Venture Partners and Volt Capital. In particular, SV Angel has additional portfolios including Coinbase, Stripe, Airbnb and Doordash.
"Magic points the way towards a world in which user identity and authentication is decentralized and not subject to control by the tech giants,” Ravikant said in a press statement.
Also, Magic CEO Sean Lee said his startup is already working with some decentralized exchanges (DEXs) such as Uniswap and RadarRelay. So Volt Capital, a member of the Chicago DeFi Alliance, is also a strategic pair. After all, the biggest challenge for DeFi adoption is user experience, not low-interest loans and lack of demand for global currencies.
Volt Capital Partner Imran Khan said the Magic Delegated Key Management service allows application developers to create custom login experiences without touching users' private keys. “I think the recession will boost their business,” Khan said. “Startups will look more efficient. They will use a platform like Magic to keep costs down.”
More importantly, Magic serves clients outside the crypto industry because it can authenticate against any protocol the platform uses. Placeholder Capital Joel Monegro, co-founder of agrees, adding that businesses are looking for secure ways to give their employees remote access to authenticated networks. ," said Monegro. "It bridges the gap between the traditional web authentication paradigm and the encryption authentication paradigm."
Any company with logins and websites can put Magic at their doorstep, without the need to rebuild a custom adaptive solution in front of their home. Can be used. After all, Monegro says authentication is what makes "key management" available.
"This is how users shouldn't give up data," added Khan. “Magic uses blockchain as its backend infrastructure so that all platforms can be easily integrated.”
Key Simplification A traceback, private key is often a long, complex password that cannot be reset by the user. Most Internet users trust platforms like Facebook for the convenience of a simplified username and password and the ability to ask for help if they forget their password, rather than maintaining complete control over their assets or profile information.
“The key is the only part of the identity. When used with 3Box, we can manage the data associated with this identity,” said Lee, referring to the release of ConsenSysbacked 3Box. “We will work together on this certified product.” Magic is also committed to serving developers, especially decentralized application (dapp) developers in the Ethereum community. Lee estimates that 5,000 developers and teams are currently using the tool, including Democracy Earth and TokenSets.
Lee gives the buyer's example: “You can manage your keys in the browser without relying on Chrome extensions. "The private key doesn't go through the Magic backend or go straight to Amazon."
He said this early startup is on track to generate more than $500,000 in revenue this year, despite the economic downturn. And as the customer-centric segment of the industry becomes saturated with wallets, service providers, and apps, Lee is focusing on selling to businesses that already have users, rather than attracting huge audiences for profit.
"I think only a handful of niche markets will eventually explode," Lee said. “Most of [crypto] adoption happens when major companies have access to cryptographic applications.”