When Alvin first showed me his prototype for Aladdin in London 2 months back; I was a bit sceptical - and asked the question everyone seems to be asking - what if you lose it? It is a good question - but that is not what Aladdin is trying to solve - it is trying to solve a bigger problem - trying to remember, ever increasing numbers, of complex set of random alpha-numeric characters we call passwords. It is a far cry from Ali Baba, when all that was needed is "Open Sesame" (which incidentally is quite a strong password).
The genius in Aladdin is that it works on almost any device that recognises USB keyboards. It generates and stores a set of randomly generated alpha-numeric characters; and combining the key with another key or some input of your own (effectively salting the password) makes it a very versatile device for managing passwords.
I think it is a brilliant concept; and one worth supporting. In corporates I have had exposure to; password management is a significant cost in IT; and this is a very neat concept in managing passwords. The problem of losing the devices remain with two exploits that come to mind - using the key itself to access systems (which can be addressed through some salting techniques) or resetting the affected passwords themselves. But for the normal user, I think these threats are compensated by the benefits of having a simple way to have strong secure passwords.
I think it's a worthwhile project; and I hope it gets full funding. I have ordered mine :)
Project Link on indiegogo: http://www.indiegogo.com/aladdin-key
Project Link on indiegogo: http://www.indiegogo.com/aladdin-key