MPC Wallet: Offering Extra Protection to the Crypto Assets

Did you know?

An approximated amount of 100 billion dollars of Bitcoin became unrecoverable due to private key mismanagement.

With the rise in technological advancements and the proliferation of the internet, data security and privacy have become a cause of concern among enterprises, especially when shared among distributed networks. However, these issues have been well handled by trustworthy solutions like Multi-Party Computation(MPC) and have been exclusively implemented in the context of Blockchain applications.

Here is a simple example that will help you comprehend MPC better.

Suppose three blockchain developers have launched a Bitcoin wallet start-up and wish to know their average salary. They want to keep their salaries private from each other or a third party during the computation process. Their salaries would be calculated using MPC based computation process, keeping the sensitive and private information hidden during the process. During the process, MPC would work on a cryptographic process known as “Additive Secret Sharing” that divides and shares the secret with the independent parties. The party would know the salary figure, but the employees won’t know about it.

MPC protocol works on two main aspects:

• Privacy and accuracy

Once the protocol executes, it is impossible to plan the private information. If a bigger group thinks of sharing the information or does something different from the instructions, MPC won’t allow it and would ask the honest parties to give a wrong output or will leak their secret information.

The blog highlights significant MPC applications known as MPC crypto wallets and how to create them from scratch.

History of MPC 

MPC was introduced in 1980 by Chinese Computer Scientist Andrew Yao. He initially implemented a two-party computation process and came up with three-party computation later on. Below is the detailed sequence of MPC evolution:

• 1982 – 1986 : MPC was introduced and resolved issues involving two parties.
• 1987 : Oded Goldreich, Silvio Micali, and Avi Wigderson adopted Goldreich Micali Wigderson Protocol in which two-party computation was transformed into the multi-party format.
• 1990s : More research was conducted, and an effort was made to enable MPC on mobile devices.
• 2008 : Denmark’s first pragmatic MPC application, known as the Sealed-Bid Sugar beet option was introduced.
• 2015 : The rise in crypto wallet hacks and thefts used MPC for private keys and to secure digital assets.
• 2019 : MPC-CMP came up with the first automatic one-round key-refreshing multi-party computation algorithm.

MPC Wallet : The Introduction

MPC crypto wallet keeps cryptos and digital assets. The platform adopts multi-party computation, offering a robust security guarantee to individuals, financial institutions, enterprises, and government agencies.

MPC is a technical product and has become enterprises’ preferred choice due to enhanced security. Even more, enterprises are venturing into this evolving segment and harnessing their earning capabilities with the assistance of an MPC wallet development company. Whether you are a start-up or an established firm, develop a robust and scalable MPC wallet by consulting skilled wallet developers.

MPC wallets are not the first generation, as Multi-Signature wallets were introduced before them. Before diving deeper into multi-signature wallets, let’s determine how they differ from Multi-Signature Wallets:

MPC Vs. Multi-Signature Wallets

A Multi-Signature wallet needs a unique digital signature and authenticates the transaction by adding more than one private key. On the contrary, in MPC’s case, a single private key is distributed among multiple parties. In multi-sig, multiple parties are involved, each holding its private key, which most of them must sign to complete the transaction.

Bitcoin network came up with the concept of Multi-Signature in 2012, and its popularity has been growing far and wide since then. The main agenda is to improve the security of the wallet.

Benefits of MPC Crypto Wallets

MPC Crypto wallets offer an array of benefits to the owners as well as wallet users that have been listed as follows:

• Reliable Third-Parties

Data is generally distributed among trusted third parties.

• Data Privacy

Data remains encrypted in static or transit mode, thereby preventing the revelation of private information.

• Provides High-Accuracy

It adopts cryptographic computations, thereby producing extremely precise results.

• Eliminates Single Point of Failure

Private keys are kept in multiple places.

• Increases The Level of Hardwork for the Hackers

Hackers are supposed to attack multiple parties accessing them at different systems and locations.

• Reduced Dependency on Cold Storage

Users can keep their assets online and don’t need cold storage devices to keep them.

MPC Wallet Use-Cases

• Use Case1 : Institution’s Paradigm Shift Towards MPC

Prominent institutions like Revolut have already switched to MPC, thereby eliminating the need for keys to protect them from internal or external issues.

• Use Case2 : Access Web3 Ecosystems

With the surge in consumer-driven product innovations, MPC crypto wallet owners get a chance to harness the power of the Web3 ecosystem. For instance, purchasing and selling NFT Tokens from popular marketplaces has become simpler and safe.

Better User Experience with MPC Crypto Wallets Over Seed Phrase Wallets

• MPC crypto wallets can be recovered immediately and don’t become the worst nightmare for crypto owners. Those who have created an online account know how to retrieve their login via email, trusted contact, cloud backup, or Biometric scan.
• The seed phrase mainly inhibits us from accessing the crypto wallet. Once this phrase gets into the wrong hands, you will lose all the wallet contents. Entering the crypto landscape without worrying about the seed phase has become the need for the hour and has given $1 Billion individuals a chance to join the Web3 segment.

Web3 Wallets Utilizing the Potential of MPC

Several Web3 wallets have started utilizing the potential of MPC crypto wallet development and have been listed below:

1. ZenGo
2. FireBlocks
3. Coinbase

5-Step MPC Wallet Development Process

Developing an MPC wallet requires sound domain knowledge and technical expertise. The process of developing an MPC wallet has been divided into five steps and has been covered in the upcoming paragraphs:

#Step 1 : Research & Analysis

It’s the first and most crucial step. The MPC Crypto wallet development services will comprehend the market conditions, analyze the competitors, and prepare a list of features and functionalities to attract the audience. During this phase, risks will be determined, and solutions will be recommended accordingly.

#Step2 : Designing & Development

Make sure the UI/UX design is stunning, and emphasis must be placed on responsiveness. Then only, it will be able to grab the attention of traders and enterprises. In addition, the developers will be integrating features and functionalities into the platform.

#Step 3 : Writing Smart Contracts

Numerous Smart Contracts are devised and thoroughly tested to ensure the smooth functioning of the wallet.

#Step 4 : Quality Assurance

Testing is the second last step of the MPC cryptocurrency wallet development process, and if everything runs smoothly, then only the wallet can be launched successfully. It’s the phase when the bugs are fixed, performance and security are checked, and quality standards are met carefully.

#Step 5 : Deployment & Maintenance

 Once the testing and debugging process end, the process heads to the last phase, in which the platform is made available for public use. However, the process continues after deployment as the developers regularly perform maintenance and updates.

Get Enhanced Security and Privacy with Antier’s MPC Crypto Wallet Development Solutions

Antier offers top-notch MPC crypto wallet development services to global enterprises. Contact their seasoned Blockchain experts who possess sound domain knowledge and technical expertise that they use while developing the MPC wallets. Their wallets are packed with high-graded security and scalability. Furthermore, the wallet features will be customized based on your preferences. Schedule a demo with our subject matter team today!