Bitget, cryptocurrency exchange, has unveiled an MPC wallet, incorporating a 2/3 private key sharding feature. This MPC wallet aims to enhance asset security and user interaction.
The cryptocurrency exchange and derivatives platform, Bitget, has introduced this innovative wallet service. It utilizes multiparty computation (MPC) to elevate security and streamline key management for its users.
Following the launch of its account abstraction wallet service, powered by the Ethereum scaling protocol Starknet, in July 2023, Bitget has harnessed MPC to completely revamp private key and asset supervision.
MPC technology relies on a distributed key generation mechanism, distributing various key fragments to diverse locations under the control of multiple entities. This fosters a procedure that necessitates the proprietors of decentralized private key fragments to validate and authorize transactions.
Innovative Features of the MPC Wallet
The MPC wallet features a “mnemonic-free” interface, removing the need for users to remember complex phrases and private keys. Instead, asset management is facilitated through password-based authentication. Bitget claims this approach eradicates the risk of a single-point exposure of private keys.
Furthermore, the exchange underscores that this development seeks to emulate the customary user interface found in conventional Web2 products and services.
However, on a more intricate level, Bitget’s MPC wallet hinges on a threshold signature arrangement, employs secure “substantial prime numbers,” and incorporates a 2/3 threshold arrangement.
The second aspect is designed with consumers in mind. It sets a minimum requirement for signature authorization. Specifically, it mandates that only two-thirds of the total key fragments are needed to complete a signature for transaction approval.
The final key fragment is safely stored on a backup cloud server, guaranteeing an elevated level of decentralization and security.
Enhanced Security Features of the MPC Wallet
The MPC wallet also introduces a re-share mechanism that nullifies key fragments on outmoded devices when contemporary devices are linked. Furthermore, this initiative aims to eliminate the danger of key fragments being potentially compromised on antiquated or neglected devices.
Additionally, users possess the capability to configure autonomous transaction passcodes. This feature ensures that key fragments held by Bitget’s server can only be utilized to execute signatures with the active consent of users.
The self-storage of cryptocurrencies has gained significant importance in the ecosystem. This comes in the wake of notable collapses of centralized entities, such as FTX.
Moreover, in March 2023, Ledger, a manufacturer of hardware wallets, secured a substantial $109 million in funding. This funding aims to boost its hardware production and venture into the creation of innovative products.
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