Building the Future of Secure Crypto Wallets with Zengo & Alchemy

In the world of cryptocurrency, security breaches and wallet hacks make headlines almost daily. But amid these stories of loss and vulnerability, one company has maintained a perfect security record. 

Zengo, creator of the first self-custodial wallet with no seed phrase vulnerability and well over 1.5 million customers worldwide, has never had a single wallet hacked since its inception in 2019. Their secret? A revolutionary approach that challenges the fundamental assumptions about how crypto wallets should work.

"There's a broken framing in the ecosystem that it's hot wallets versus cold wallets," explains Ari Gore, Zengo’s Head of Communications. "Both hot and cold wallets have the same single point of failure: One centralized private key". Instead of relying on a single point of failure - whether stored online or offline - Zengo developed a consumer-friendly multi-factor wallet leveraging institutional-grade Multi-Party Computation (MPC) technology. 

A Vision for Better Cryptocurrency Security 

The company's approach challenges the traditional dichotomy between hot and cold wallets in the crypto ecosystem. Rather than relying on a single private key stored either online or offline, Zengo’s MPC wallet implements a sophisticated multi-factor system that distributes security across multiple components. 

At its core, the platform utilizes a two-factor security system built on MPC technology, eliminating the traditional vulnerability of seed phrases. They've enhanced this foundation with advanced features like Biometric Theft Protection using encrypted liveness biometrics, a built-in inheritance-style feature, Bitcoin Vaults and more. 

Offering both consumer and enterprise solutions, their desktop experience provides a secure environment for managing high-value transactions while maintaining the advanced security of mobile device authentication.

Zengo’s desktop-mobile hybrid experience provides an enterprise-grade solution for secure transaction management, making it particularly attractive for business users who need to handle high-value transactions with multiple stakeholders. 

This approach has been validated by Certik, a leading blockchain security firm, which confirmed that Zengo's security model surpasses traditional solutions that industry leaders and hardware wallets have relied on so far.

The Onchain Infrastructure Challenge

But building a revolutionary wallet isn't just about security architecture. Behind every transaction, every asset check, and every blockchain interaction lies a complex web of infrastructure, which can bring upon several challenges. Initially, Zengo managed this infrastructure themselves, maintaining their own blockchain nodes and developing custom APIs. 

Facing the burden of self-hosted blockchain nodes, which required constant maintenance, diverted significant internal resources from core development. This challenge became increasingly complex as they scaled across multiple blockchains, creating a substantial operational overhead for both node maintenance and API development. 

For a security-focused wallet provider like Zengo, infrastructure reliability is paramount - any downtime could prevent users from accessing their funds or completing critical transactions, potentially resulting in significant financial impact and damage to user trust. With over 1.5 million customers around the world, even brief interruptions in service could have severe consequences for both individual and enterprise clients.  

The impact of these challenges extended beyond just operational inefficiencies. Engineering resources were split between core product development and infrastructure maintenance, significantly reducing their capacity to focus on their core business differentiators: Ultimate security for their Zengo wallet customers.

"We used to own and maintain blockchain nodes by ourselves," recalls Meni, Zengo’s VP Engineering. "It was very cumbersome, with lots of maintenance and support challenges that we needed to handle. We realized - we are not in the business of nodes."

Finding the Right Partner

As a pioneer in secure crypto wallet technology, Zengo faced intense pressure to select an infrastructure provider that could match their commitment to excellence and reliability. The stakes were particularly high given their unique position in the market - they weren't just looking for a provider, but a long-term infrastructure partner who could grow with them and support their innovative MPC-based security model.  

The performance capabilities were equally important, as Zengo's multi-chain support and growing transaction volume required an infrastructure partner who could scale seamlessly. Alchemy's security-first engineering approach aligned perfectly with Zengo's own security mindset, providing the robust foundation needed for a wallet service handling significant user assets across multiple blockchains. 

Several key factors drove Zengo's decision. What particularly set Alchemy apart was the comprehensive developer platform, and the industry-leading reputation as a reliable provider for major onchain protocols. 

Ultimately, the choice of Alchemy as an infrastructure partner meant Zengo could focus on pushing the boundaries of wallet security while having complete confidence in their underlying infrastructure. Alchemy's proven track record of reliability across all supported networks provided the confidence Zengo needed.

Looking Back

The partnership has evolved over the last 4 years, with Zengo being one of Alchemy's earliest clients. Alchemy's solutions transformed Zengo's operational approach across multiple dimensions. The integration went beyond basic RPC infrastructure to include a complete suite of tools including the Supernode, the NFT API and Webhook systems that Zengo's development team could leverage to enhance their service. 

The infrastructure migration involved a careful transition from self-hosted nodes and other providers to Alchemy's managed infrastructure, along with integration of Alchemy's API suite for enhanced functionality and implementation of webhook systems for user notifications and balance updates.

Moreover, Alchemy's proven uptime record and redundant systems ensure that Zengo's users maintain consistent access to their digital assets, while the 24/7 support team stands ready to address any potential issues before they impact end users.

The business impact has been equally significant. By freeing up resources previously dedicated to infrastructure management, Zengo has increased their focus on core security features and accelerated their deployment of new blockchain support. The improved scalability across multiple networks has enabled them to grow more efficiently, while the enhanced customer experience through reliable infrastructure has strengthened their market position. 

The Developer Experience

For Zengo's development team, the partnership with Alchemy brought immediate relief. "It's not just about maintaining a node," one developer explains, "but also providing support for this API. It just doesn't scale. It's not our business." With Alchemy handling the infrastructure, the team could refocus on their core mission: pushing the boundaries of wallet security and user experience.

The comprehensive nature of Alchemy's solution meant developers could work with a single, unified platform instead of juggling multiple services. The 24/7 support team became an extension of Zengo's own technical operations, ready to address any potential issues before they impacted end users.

Community Impact

The partnership's success is perhaps best reflected in the experience of Zengo's users. The improved infrastructure reliability meant users could consistently access their assets and execute transactions without interruption. For enterprise clients managing significant portfolios, this reliability proved crucial for their operations.

The enhanced API capabilities also enabled Zengo to rapidly expand their feature set, from improved NFT support to more sophisticated transaction monitoring. Enterprise users particularly appreciated the desktop-mobile hybrid experience, which provided the security of MPC technology with the security of mobile device authentication.

Looking to the Future

As Zengo continues to grow, their partnership with Alchemy provides the foundation for ambitious expansion plans. The team is developing enhanced business and enterprise solutions, including sophisticated multi-user access control systems. They're also working on supporting additional blockchain networks and implementing advanced security features for high-value transactions.

"Our goal is to be the most secure crypto wallet used by the entire world," states the Zengo team. With Alchemy's infrastructure supporting their work, they're well on their way to achieving that vision. The partnership stands as a testament to how the right infrastructure partner can enable a company to focus on their core mission while maintaining the highest standards of service reliability.

This collaboration is more than just a technical integration - it's a shared commitment to building a more secure and accessible future for cryptocurrency users worldwide. As the onchain space continues to evolve, the partnership between Zengo and Alchemy demonstrates how specialized expertise in different areas can come together to create solutions that are greater than the sum of their parts.