News

Upstream launches secured vault for NFTs

Thursday 4 August 2022 11:20 CET | News

US-based Upstream, referring to itself as a no-code, full-stack platform to build DAOs (decentralized autonomous organizations) has launched a new product called the ‘Vault DAO’ to improve security for NFT holders.

 

As Upstream’s creators noticed, security isn’t a new issue in crypto, but the existing solutions, especially for individuals, are limited.

TechCrunch details how hardware wallets, for example, provide a secure option for people to store the private keys to their wallet on what’s an external hard drive, but these cold wallets aren’t known for being user-friendly. One could misplace a hardware wallet as they could lose the seed phrase that enables them to access their crypto.

The alternative is ‘hot wallets, which are connected to the internet. However, most solutions for NFTs are custodial or operated by a centralized entity. It’s also possible that assets in a hot wallet could get lost in the shuffle of connectivity issues.

The Vault DAO, Upstream’s solution, operates as a multisignature wallet that can be configured to require sign-off from multiple discrete accounts to authorize a transaction on behalf of a user. A user can set up multiple accounts directly through Upstream and can choose a threshold for the number of signatories needed to execute any given type of proposal.

A user could require three signatories to sign off on any transfer of assets from a specific wallet, and those three signatories could either all be accounts operated by the user or could include accounts delegated by the user to a trusted friend. Mechanically, the product operates as a user’s personal DAO, because each transaction takes place in the form of a proposal being made by the user, voted on by a predetermined critical mass of DAO members and then executed as such.

US-based Upstream, referring to itself as a no-code, full-stack platform to build DAOs (decentralized autonomous organizations) has launched a new product called the ‘Vault DAO’ to improve security for NFT holders.

How does it work?

The solution is similar to Gnosis Safe, a multisig wallet tailored toward organizations, although creators say that the Vault DAO is more user-friendly from a design standpoint. Vault DAO is specifically designed for individual users to secure their own assets rather than for groups that require multiple parties to sign off on a transaction.

As for where the assets are actually held, the Vault DAO product connects with existing wallets including MetaMask and Rainbow as well as the WalletConnect protocol, allowing users to link assets held in cold storage to their Vault DAO. Upstream’s website currently allows users to sign up to request early access to the product, although the expected timeline for its public launch has not been announced.

More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: NFT, cybersecurity, digital assets, digital wallet
Categories: DeFi & Crypto & Web3
Companies: Upstream
Countries: World
This article is part of category

DeFi & Crypto & Web3

Upstream

|
Discover all the Company news on Upstream and other articles related to Upstream in The Paypers News, Reports, and insights on the payments and fintech industry: