In the past year Magic firm use has changed from regular internet users to mainly Web 3 applications. said CEO Sean Li. Magi. That is a new way of logging into websites without needing on passwords or the centralized honeypots that keep huge lists of them. This firm has closed a $27 million funding round.
The Series A round, decleared Thursday.It was headed by Northzone and contained Tiger Global, Volt Capital, CoinFund and Digital Currency Group. It brings Magic’s total funding to $31 million, following a $4 million seed round in May 2020. Which it contained the likes of Placeholder, SV Angel and Naval Ravikant.
Passwords are usually the way users demonstrate ownership of long alphanumeric private keys. Those secret passwords are trusted to platforms such as Equifax, LinkedIn or Kickstarter, and once an assukter ivades one of these platforms and have access to a database of hashed passwords, they can try to brute force weaker passwords. The passwords which are likely used elsewhere too, such as the user’s bank account.
What Magic’s authentication do?
Magic’s authentication system uses key pairs made on the platform-independent Ethereum blockchain. Instead of sharing a secret, the user signs a piece of data with their private key, generating and making a signature. Which that signature is in computing terms, supplying you that you have knowledge of a secret without disclosing anything is called a zero-knowledge proof. Magic forms this and it lets it all happen via user-friendly emailed links. And in addition, it can also be simply plugged in as an SDK by software developers.
“Under the hood, every user that signs up with Magic has an Ethereum key pair generated for them, whether they use that key pair or not,”. Magic CEO Sean Lin mentioned it in an interview. He also added:
“So we actually have users in the millions now, growing at 6% a week, which means we are probably one of the fastest distributors of decentralized identity and blockchain key pairs. Eventually, when the time’s right, they are all going to come back and be Web 3 users.”
By talking a look back at couple of years, we can see that the main part of Magic users were non-blockchain apps, or regular Web 2 fans, said Li. But, he said that past year has seen a surge of interest. especially driven by things like non-fungible tokens (NFTs).
“Before this year, I would say about 60% or even 70% was from Web 2,” Li said. “But this year there has been a real shift towards Web 3 and it now accounts for maybe 80% of use.”