Stolen privacy keys are a source of nightmare for crypto wallet users. Over the years, hacks have wiped out cryptocurrencies worth millions of dollars, and no one, not even the biggest brands, has been able to fight it out. MPC is the best solution. While MPC theory has been around since the early 1980s, it only recently entered the digital asset space; since then, MPC has become one of the primary technologies to secure crypto assets.
Multi-party computation (MPC), also known as secure MPC (SMPC), is a cryptographic security measure that allows multiple parties to evaluate a computation without revealing any private information or related secret data held by each party. Furthermore, MPC technology is still evolving as the cryptocurrency market grows, and so will the demand for a reliable digital asset storage solution.
What is an MPC wallet?
Crypto wallets that use MPC (Multi-Party Computation) technology provide enhanced security for storing and managing cryptocurrencies. These MPC wallets securely store and manage private keys, using a combination of advanced cryptographic techniques and distributed computing to access and manage cryptocurrency assets. MPC wallets typically operate a technique known as “threshold signatures” to ensure that only authorized parties get access to private keys. A private key gets divided into multiple “shares” distributed among different parties using threshold signatures.
The MPC wallet divides the private key into multiple shares and distributes them to various parties. It becomes much more difficult for any single party to gain unauthorized access to the private key or cryptocurrency assets. MPC allows authorized participants to work together to compute a function or execute a transaction. In brief, MPC is a technique that provides a reliable solution to data security and privacy issues, particularly in blockchain applications.
Workflow of MPC wallet
Before processing a crypto transaction in an MPC wallet, key generation is necessary. The MPC wallet’s public and private keys get generated. Only one public key gets generated, and the number of private key shares generated is proportional to the number of parties involved.
Anyone from the signing parties can request the generation of public keys. This makes receiving the desired amount of money through that address easier. Anyone with access to the wallet’s public key can verify the transaction on the blockchain.
Access to funds
Access to funds in the MPC wallet is only possible if the conditions established during its creation are met. MPC wallets attempt to solve the problems of traditional crypto wallets by distributing ownership of a private key between n parties in a redundant manner. Each party does not have a separate private key; instead, they each have a portion of the key (called a key share). To sign a transaction, all parties must apply their key shares to it—this is the only way to generate a valid digital signature for that wallet. It adds security to the wallet and prevents unauthorized access or funds misuse.
The development process of the MPC wallet
First, our Business analysts create research and analyze the MPC wallet requirements. We recommend elements like feasibility, competition, market needs, technology, programming languages, frameworks, features, etc. We examine the working flow and document the time frame.
The next step in our MPC wallet development is to design the application’s user interface. We use appropriate design practices to create visually appealing user interfaces (UI) that provide a seamless user experience. We design next-generation MPC wallets that reflect your business objectives while meeting technical specifications.
We develop the wallet application by integrating it into the blockchain(s) of your choice. The wallet’s functionality and the Threshold Signature Scheme (TSS) gets defined by smart contracts. Implement the threshold signature scheme, which is the foundation of MPC crypto wallets. Set up smart contracts dividing the private key into multiple shares and distributing them to various parties.
Quality Assurance Testing
In the testing stage, our testers initiate various test cases on the MPC wallet to identify bugs and errors. The process gets repeated until the application is error-free. Alpha and Beta testing, with public participation, can help accelerate the process. We test your wallet thoroughly to ensure that it works properly.
Launch and Maintenance
The MPC wallet is finally available to the public after testing. Every MPC wallet development aims to distribute control of the private key shares, reducing the risk of fund loss or theft. We offer post-deployment support whenever it is needed. To stay current with the latest Web3 trends, we ensure upgradation whenever necessary.
Benefits of MPC wallet
The transaction gets distributed with the involvement of trusted partners. Secure voting systems allow multiple parties to participate in the voting process without disclosing their votes to one another.
Users in transactions involving sensitive personal or financial information necessitate a high level of privacy. Data privacy is ensured by encrypting user data and transactions, guaranteeing no private information is revealed or compromised. MPC wallet applications can be integrated into blockchain protocols, allowing easier access to new networks and crypto asset types.
MPC produces highly accurate results for various cryptographic computations. MPC wallet solutions enable organizations to use secure and private transactions, such as accounting and auditing. Decisions are required to enable secured private lending and borrowing of assets.
Single points of failure (SPOFs) get eliminated because private keys won’t get stored in a single location. Create shared key wallets in which multiple individuals can control the funds in the wallet without revealing their private keys to one another.
MPC wallet protects one’s crypto holdings from threats by distributing secret shares of the private key to multiple parties. Hackers must work much harder – a hacker must attack numerous parties across systems and locations.
Ease of Access
Using an MPC wallet reduces business workload by allowing multiple parties to access, transfer, and manage crypto assets. Users can store assets online and no longer require cold storage devices.
MPC wallets are user-friendly even for new crypto users. They also allow users to trade non-fungible tokens (NFTs). When calculating blockchain gas fees (regardless of the number of signers involved), costs will be the same as for a standard blockchain transaction. Are you interested in MPC wallet development? Then Coinsqueens is the best choice. Coinsqueens is a leading crypto wallet development company. We specialize in developing MPC wallet applications for clients. We also provide clients with other Web3 business applications with the option of integrating these wallets for enhanced functionality. We have a dedicated team to develop the MPC crypto wallet. Contact us today to grab a free demo of our MPC(Multi-Party Computation) wallet.