The flagship product of Foundation is the Passport, a hardware wallet that doesn’t compromise but combines security, privacy and user experience. Even though the Passport is integrated into various open-source desktop and mobile bitcoin wallets, it works the easiest with the in-house mobile app Envoy. Envoy’s ultimate purpose is to incorporate all Foundation devices in one cohesive self-sovereignty system that would allow for complementary services such as additional privacy procedures.
After Sovryn, Foundation is our second investment in the Bitcoin ecosystem. Bitcoin is a unique and fundamentally different asset class in contrast to the Web3 space. Bitcoin has been evolving/hardened since 2009 into a secure, censorship-resistant and neutral base layer that has withstood many attacks, be it e.g. forks or regulatory scrutiny. However, bitcoin’s security ends where centralized players manage your bitcoin (or rather your private keys) for you.
When keeping bitcoin on exchanges, or more generally with custodians, one has to trust centralized companies. A refresher of this is the recent bankruptcy of FTX and the loss of $600m of customer funds. Counterparty risks around centralized companies have at least existed since Mt. Gox, the first bitcoin exchange hacked back in 2011.
Since 2011, self-custody technology has improved significantly. But trusting the technology and ultimately the device, like the saying “trust, but verify”, is only possible if the device’s firmware is open source and its hardware transparent as is the case with Passport. With an additional focus on air-gapped security through QR codes, privacy through Tor, and adequate user experience to onboard new-coiners, it strikes a balance that is difficult to compete with.