What is Curv doing, the cryptocurrency company for which Paypal has paid 200 million dollars

After several days of rumors, since the Israeli media broke the news, PayPal today officially announced its intention to purchase Curv (There is talk of a 200 million dollar operation) and integrate it into its cryptocurrency business unit, a recent bet by the popular payment platform.

Curv is a startup founded in 2018 in Tel Aviv, which had been offering its clients services aimed at solving one of the biggest problems of financial institutions when working with cryptocurrencies: the custody of them.

Curv's solution to safeguard cryptocurrencies

Faced with the approach of companies like Xapo, which has opted to safeguard bitcoins in physical devices located in bunkers under mountains (cold storage), Curv proposes to discard "1950s" approaches and offer a cloud-based solution.

The problem with this kind of money is that, lacking physical form, can be stolen by anyone who knows your private key, since this key (a mere alphanumeric string) unlocks access to the digital wallet where it is stored. This not only reduces your security, but can also cause thefts to go weeks or months without being detected.

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As an alternative to this, Curv has been offering a new method based on cloud computing, which involves dividing this 'private key' between multiple trusted agents, applying the blockchain custody technology usually known as MPC ('secure multiparty computation' or 'secure multiparty computing').

The MPC allows any of the parties involved to jointly solve calculations while safeguarding the privacy of entered data; And the way in which Curv has implemented it prevents, for example, the theft of a single computer from allowing the cybercriminal to operate with the money contained in a wallet.

In the words of Itay Malinger, Akamai veteran and CEO of Curv,

"Five years ago, doing this would have taken too much time and bandwidth, but now the math has advanced and you can reduce the necessary calculations to less than a second. That allows you to do them using the cloud.

Who uses Curv technology?

This type of technology, of course, it is not intended for use by end users, but to intermediaries who operate with large amounts of cryptocurrencies.

Among the companies and services that have experimented with Curv's technology in recent years, the popular app for buying stocks and cryptocurrencies stands out. eToro, or BNP Paribas, the financial giant that is experimenting with secure ways to transfer security tokens as a way to move towards integrated custody of digital and regulated assets.

Besides that, Malinger has also spoken on several occasions about numerous "traditional financial institutions" that they would have turned to Curv as a provider of cryptocurrency custody services, without giving more details about it.

What are PayPal's future plans for crypto?

Following the purchase of Curv and the integration of its human team and its technology in PayPal's own platform, this company intends to take its commitment to cryptocurrencies one step further.

Let's remember that half a year ago, PayPal announced its landing in this area, at least in the US market, where thanks to an agreement with Paxos Trust Co. already offers services for the sale of Bitcoin, Bitcoin Cash, Litecoin and Ethereum.

To this is added his intention that throughout this year he begins to offer US merchants the ability to pay for products and services using cryptocurrencies. And finally, by the end of this year, there is also the objective of expanding both services to other national markets.

Image | Based on original from Official Leweb Photos