Crypto Wallet to Replace Private Keys With Encrypted QR Codes

Decentralized cryptocurrency wallet SafeWallet is launching a new QR code-based user identification system to replace mnemonic phrases and private keys, the firm announced Friday.

The app, operated by China-based Cheetah Mobile, will use a two-tier security system to grant users access to their holdings, according to a press release.

The first stage will have users scan their personalized and encrypted QR codes, while the second asks pre-set security questions.

"The QR code is highly encrypted, so it can't be decrypted by scanning it with other software ... [and] SafeWallet does not store your QR code on its servers," a company representative told CoinDesk in an email.

In particular, the system hopes to ensure users are not writing their backup phrases down on paper, "Which can be easily lost, stolen or damaged."

"A hacker can't access your assets with your QR code alone. They would need to know the answers to your security questions. Our security questions are more specific than your average security questions, so they would be extremely difficult to guess, even if someone is very close to the user. ... You are in complete control of your assets at all times."

As a safeguard against theft, private keys "Will never" appear as text in the wallet, they said, while SafeWallet will also scan users' devices for apps containing malicious code and notify users if anything suspicious is found.

SafeWallet product head Kaiser Zhang said in a statement that the new tool means "There is no longer any need to memorize or transcribe long mnemonic phrases or private keys."

Further, the company has granted third-party developers access to its security tools, allowing others to add similar security features to their own projects.

"SafeWallet's innovative ID system will serve as a bridge connecting decentralized and centralized systems and resolving ease-of-use and security issues for blockchain products," the company claimed.