Passwords have long been the cornerstone of online identity protection, but their vulnerabilities have led to a significant number of data breaches. According to Verizon, nearly one-third of data breaches reported over the past decade were caused by stolen credentials. In response, the tech industry has largely turned to passkeys as a solution, with over 15 billion accounts online capable of using them. However, users have been slow to adopt passkeys due to their lack of portability and clunky user experience.

Enter Hawcx, a cybersecurity startup founded in 2023 by Riya Shanmugam, Selva Kumaraswamy, and Ravi Ramaraju. The company has developed a passwordless authentication technology that aims to address the limitations of passkeys while providing enhanced security. Unlike passkeys, which require transmitting and storing private keys from devices, Hawcx's solution cryptographically generates private keys every time a user signs in, eliminating the need for storage or transmission.

This approach enables Hawcx's technology to work on older devices that lack the modern chips required for typical passkey setups. Moreover, the solution allows users to seamlessly switch between devices without creating new private keys or storing them in the cloud. Instead, Hawcx's technology verifies the user's authenticity and registers the new device on their account, ensuring a hassle-free experience.

Hawcx's founders believe that their technology can overcome the usability issues plaguing passkeys. "We are not reinventing the wheel fundamentally in most of the processes we have built," Shanmugam told TechCrunch. "What we are challenging is the foundation itself. We are not building on top of what passkeys as a protocol provides. We are saying this protocol comes with an insane amount of limitations for users, enterprises, and developers, and we can make it better."

While Hawcx's technology has yet to be deployed by companies or validated by third-party experts, the startup has raised $3 million in a pre-seed round led by Engineering Capital and Boldcap. The funding will be used to accelerate product development and bring the technology to market. Hawcx is currently in talks with large banks and gaming companies to launch pilots in the next few weeks, which will run for three to six months with a limited set of users.

The startup also plans to collaborate with cryptography experts at Stanford University to validate its technology. Industry experts, such as Tushar Phondge, director of consumer identity at ADP, are optimistic about Hawcx's solution. "As we are rolling out passkeys, the adoption is low. It's clear to me that as good as passkeys are and they have solved the security problem, the usability problem still remains," Phondge told TechCrunch.

Hawcx's long-term goal is to become a unified authentication platform for businesses, integrating services such as document verification, live video verification, and background checks. If successful, the startup's technology could revolutionize the way we approach online identity protection, providing a seamless and secure experience for users and enterprises alike.

As the cybersecurity landscape continues to evolve, Hawcx's innovative approach to passwordless authentication is an exciting development that could have far-reaching implications for the industry. With its focus on usability and security, Hawcx is poised to challenge the status quo and provide a better solution for online identity protection.