The recent hack on WazirX, one of the world’s leading crypto exchanges, has taken a toll on the crypto domain. The incident left an indelible impact and raised questions about the security of self-custody wallets. In this blog, we will spotlight the WazirX hack and ways to enhance wallet security through Multi-Party Computation(MPC) wallets, so let’s get started:
WazirX was hacked on 12th July 2024, resulting in a significant loss of over $230 Million. The wallet’s vulnerability emerged as an opportunity for the hackers and allowed them to add funds to an unknown wallet. This has sent shockwaves to millions across the globe and has left them concerned about the safety of their investments.
MPC wallets provide viable solution to overcome security breaches. These wallets leverage advanced cryptographic mechanisms by dividing the key into multiple shares, making it difficult for hackers to access the funds. Moreover, each party needs to be made aware of the key phrase held by another, fostering complete privacy.
To build inventive solutions like MPC wallets, you must have sound domain knowledge and experience. This is when you consider hiring an MPC crypto wallet development partner to get a customizable business solution.
According to prominent source Skyquestt, the crypto wallet domain will experience significant growth, with a market size of USD 61.87 Billion, a massive increase from 6.75 billion in 2021. The crypto wallet development domain is undergoing substantial advancements, and the groundbreaking MPC wallet has been introduced. Also, prominent wallet providers like Zengo and Qredo have started making MPC wallets for businesses of various sizes. As a start-up or an established enterprise, you can tap into the domain with MPC crypto wallet development services.
Besides enhanced security, MPC crypto wallets offer compelling benefits to businesses. Let us discover them one by one:
The foundation of the wallets is the Multi-Party Computation(MPC) mechanism, which harnesses the capabilities of Byzantine fault tolerance for distributing keys across different servers. Byzantine Fault Tolerance ensures that the system is operational even in the case of attacks or malfunctions. This mitigates single failure points, making it impossible to access the funds.
MPC crypto wallet incorporates granular access control through threshold signatures. This enables multiple parties to approve the transactions without disclosing private keys they hold, improving wallet security and ensuring smooth workflows.
Unlike traditional wallets, MPC crypto wallets are protocol agnostic. This means they support several blockchains, including the permissioned ones for consortium use cases. If you are dealing with prominent blockchains, the adaptable nature of the solution gives your business an edge.
These wallets go beyond basic access control, allowing authorized individuals to carry out computations on encrypted data without decrypting it. In terms of transactions, the solutions offer enhanced privacy.
MPC wallets can be effortlessly integrated with existing systems. They consist of APIs and SDKs that offer simple integration within current security systems and resource planning tools by integrating MPC wallet as a service without hampering existing workflows.
Multisignature wallets have been in the crypto industry for a long time. The new MPC(Multi-Party Computation) technology has taken the lead over these wallets. Here is why businesses should procure the benefits of MPC wallets over multisig:
1. Better Security due to Distributed Key Mechanism
The multi-signature wallets divide the private keys across different devices, while MPC wallets distribute them into shares in the case of the MPC crypto wallet. This eliminates a single point of failure. Even if one key is compromised, it is difficult to gain access to the wallet’s contents.
2. Streamlines Operations for Growth
Accessing Multi-Signature wallets was a complex task for business. Adding or eliminating signatories, managing multiple keys and adapting new protocols demand complex configuration alterations within the multi-sig wallet. Businesses can also adjust approval requirements and add new signatories without hampering their workflow.
3. Future-Proofing Technology within Multi-Chain Realm
The blockchain domain is growing by leaps and bounds with the emergence of new protocols. Multisig wallets often struggle to be at par with this innovation, which demands separate setups for every supported chain. By using the abilities of MPC crypto wallet development, enterprises can manage their assets from a single platform.
Once you have learned about MPC wallets, their benefits and their distinguished abilities over Multi-Signature wallets, it’s time to look at the prominent use cases :
Procure the capabilities of secure asset management offered by the world’s largest MPC wallet development team ‘Antier’.Our experts tailor a solution that provides unrivalled security, streamlines DeFi workflows and improves the operational efficiency of the business. Avoid settling for outdated systems and invest in the future of self-custody. Integrate the MPC wallet as a service within your existing systems by consulting us now!
The WazirX incident taught us the significance of powerful security measures.By learning and incorporating best practices like MPC crypto wallets, one can better safeguard one’s funds and instill confidence among customers.As the domain evolves, we are going to witness some groundbreaking innovations in it.
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