dWallet Labs has raised a $5 million seed round led by Digital Currency Group and Node Capital, according to a company statement.
Other investors include; Amplify Partners, Lightshift Capital, Liquid2 Ventures, Collider Ventures, Lemnsicap, Heroic Ventures, Impatient Ventures, Zero Knowledge, Dispersion Capital, Token Bay Capital, Tykhe Block Ventures, Cerulean Ventures and Earl Grey Capital alongside founders and angel investors from Coinbase, Ethereum, Celo, AngelList, Alt, Spearhead, and others.
dWallet Labs says it is building protocols and projects on top of the Odsy Network, a programmable decentralized access layer for Web3.
The implementation of dWallets is said to mark the beginning of the third phase of blockchain technology with decentralized access control.
The company says that Web3 has a major access control problem because it is becoming more fragmented with new protocols, assets, and chains. Managing access to decentralized solutions in a centralized way undermines decentralization. This is where a their process of decentralized access control comes in.
Dynamic Decentralized Wallets (dWallets) are described as the trustless access control solution for Web3. A dWallet on the Odsy Network is said to be bound to Wallet Contracts, dedicated smart contracts that manage the access control and privileges for that dWallet.
The dWallet concept is predicted to transform how digital assets are stored, used, accessed, and connected to the real world by adding a fully decentralized layer of a dynamic and stateful access control.
Amos Meiri, Founding Partner at Node Capital, commented:
“It is rare to witness a totally new decentralized infrastructure allowing many new use cases that were not possible before with the utilization of the dWallet concept.”
Meiri said that soon after meeting the dWallet Labs team, they recognized the potential for their dWallet ecosystem,” said Matt Beck, Director of Investments at Digital Currency Group, adding that dWallets may offer new ownership and transfer capabilities for a more expansive set of complex cryptoassets.
Omer Sadika, Founder and CEO of dWallet Labs, explained:
“Custody is just the tip of the iceberg, trustless access control is the missing piece of crypto. dWallets and the Odsy Network will connect crypto to the real world with so many new use cases. Today, we find it trivial that we have the appropriate access control, whether that be for a note-taking app or a bank account. However, when it comes to crypto, we have to choose between poor access control we get from blockchains to centralized solutions that defeat the purpose of being decentralized in the first place.”
The Odsy Network was founded by Sadika, David Lachmish, Sean Lee, and Yehonatan Cohen Scaly, with the Zug, Switzerland-based Odsy Foundation that will support and develop the wider Odsy ecosystem.
dWallet Labs is said to provide professional services to the Odsy Foundation, and support for organizations building on the Odsy Network.