Last year, CoinDCX added a self-custody cryptocurrency wallet called Okto to its services offering. The company estimates that it serves 1.3 crore cryptocurrency users in India. The Indian cryptocurrency exchange is already applying security patches to its Okto platform after having gained access to the newly exposed security gaps in the crypto ecosystem. With artificial intelligence (AI) technology, CoinDCX has enhanced its new security features. The corporation believed that the security systems in place needed to be improved, particularly as 2022 was the worst year ever for cryptocurrency thefts, with hackers trying to steal up to $3.8 billion (about Rs. 31,100 crore) in spite of protection precautions.
On Tuesday, May 23, CoinDCX said that Okto was the first self-custody wallet ever to use AI since it had been combined with cutting-edge cognitive AI technology. Machine learning (ML) has also been used by the Okto team to assess and track trends in both common and atypical crypto transactions.
Real-time monitoring of all transactions will be made possible by this layering in addition to continuous login authentication. Furthermore, the AI will be essential in seeing and recognising any questionable transactions that are being facilitated to or via the Okto wallet.
Vivek Gupta, the Chief Technology Officer (CTO) of CoinDCX, said that this update to Okto will offer “unparalleled protection” against phishing schemes, account takeovers, and malware assaults in an interview with Gadgets 360.
“This proactive security check procedure serves as a strong barrier against fraudulent activity. This cutting-edge security system uses artificial intelligence and machine learning to validate a user’s identification based on their behavioural and cognitive tendencies, according to Gupta.
It is noteworthy, nevertheless, that Okto’s use of AI and ML to study user behaviour on their devices, programmes, and websites may cause some consumers to worry about their privacy. The corporation has yet to provide a reaction on the matter.
The failure of exchanges like FTX and wallet providers like Coinbase increased the craze surrounding self-custodial cryptocurrency wallets. This placed people’s financial security at danger.
Users using self-custodial wallets are not dependent on any cryptocurrency exchange or wallet provider to store their private keys on their computers, making them an easy target for hackers or anyone facing a liquidity shortage.
Changpeng Zhao, the CEO of Binance, and Michael Saylor praised self-custodial wallets for preserving priceless digital assets in November of last year.
In August of last year, CoinDCX pounced on the chance to introduce a self-custodial wallet. At that time, the business had introduced Okto, a mobile app that would provide a keyless, self-custodial wallet service supported by many levels of protection, as well as native access to more than 100 decentralised applications, including DeFi, NFTs, synthetics, and cross-chain bridges, among others.
According to Gupta, Okto’s new AI and ML features are a step towards the wallet and other emerging technologies advancing.
“Hardware wallets were traditionally thought of be a secure solution. But as technology developed, new and improved security mechanisms would appear. In order to guarantee that the private keys needed to access and control money are never completely exposed, we incorporated the multi-party computation (MPC) technology to Okto, he said. This eliminates the possibility of a single point of failure.
In the world of cryptocurrencies, CoinDCX had become the first unicorn from India in 2021, with a market capitalization of over $1 billion. Pantera and Steadview led a recent $135 million (approximately Rs. 1,044 crore) Series D investment deal for the company. In the past, Coinbase Ventures and Facebook co-founder Eduardo Saverin invested over $100 million (approximately Rs. 760 crore) in the business.