Contents
Cryptocurrency exchange Bitget has unveiled a cutting-edge multiparty computation MPC Wallet, designed to bolster security and streamline key management for its users.
MPC Technology Revolutionizes Security
Bitget, renowned for its innovative solutions, has leveraged MPC technology to transform the landscape of private key and asset management. MPC employs a distributed key generation system that disperses key shares across multiple locations, each controlled by different entities. Thus, this approach necessitates the cooperation of key share owners for transaction authorization.
Mnemonic-Free User Experience
The new MPC wallet redefines the user experience by eliminating the need for mnemonic phrases and private key memorization, a long-standing industry practice. Instead, assets are secured through password-based authentication. This groundbreaking approach mitigates the risk of a single-point private key exposure.
Read More: US Stocks 10-Year Treasury Yield Surges Beyond 5%
Traditional Web2 User Experience
Bitget’s development aims to mirror the user experience found in traditional Web2 products and services. Technically, the MPC wallet employs a threshold signature scheme, utilizing secure “large prime numbers” and incorporating a 2/3 threshold setup. Thus, this setup is tailored to consumer-grade users, requiring only two-thirds of key shares for signature authorization.
Enhanced Security and Decentralization
The final key share is securely stored on a backup cloud server, ensuring an elevated level of decentralization and security. Additionally, the MPC wallet introduces a reshare mechanism, rendering old device key shares invalid upon connection to newer devices. Therefore, this prevents potential compromises on outdated or forgotten devices.
Standalone Transaction Passwords
Users have the option to configure standalone transaction passwords, ensuring that key shares held by Bitget’s server can only be utilized with the user’s active consent.
As the crypto industry matures, secure self-storage solutions like Bitget’s MPC wallet have become pivotal, especially following the failures of centralized players. However, Bitget’s innovation aligns with the industry’s continuous pursuit of enhanced security and user-friendly experiences.
In a related development, hardware wallet manufacturer Ledger raised $109 million in March 2023 to expand its hardware production and explore new product offerings, underscoring the growing demand for secure crypto storage.
Do you need help in finding the best crypto exchange for your needs?
Click here: The Best Crypto Exchange Finder
Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
Follow Us on Facebook: Tradingcompass.io
