Bitget releases MPC wallet which includes 2/3 private key sharing. Cryptocurrency exchange Bitget has released a multi-party computing wallet to improve asset security and user experience. To receive the latest news about digital currency wallets and the crypto world, stay with us on Pooyan Music site.
Cryptocurrency and derivatives exchange platform Bitget has launched a new wallet service using multiparty computing (MPC) to improve security and key management for users.
After launching its account abstract wallet service powered by Ethereum’s Starknet Scalable Protocol in July 2023, BitGet used MPC to overhaul private key and asset management.
MPC technology uses a distributed key generation mechanism. That is, it distributes multiple key shares in different locations controlled by multiple parties. This enables a process that requires distribution private key holders to sign and authorize the transaction.
The MPC wallet features a mnemonic-free user experience that eliminates the old industry standard of requiring users to store or remember mnemonic phrases and private keys. Instead, assets are managed using password-based authentication. Bitget strives to eliminate the risk of single-point private key exposure.
Sarafi notes that the goal of the development is to mirror the user experience typically found in traditional Web2 products and services. On a more technical level, Bitget’s MPC wallet relies on a threshold signature scheme. It uses safe large primes and has a 2/3 threshold setup.
The second feature was designed for consumer grade users and introduces a minimum number of signature authorizations. That is, it only takes two-thirds of the total key shares to complete a signature to confirm a transaction. The latest key share is securely stored on a backup cloud server. It ensures a high level of decentralization and security.
The MPC wallet also introduces a re-sharing mechanism. It invalidates key subscriptions on older devices by connecting newer devices. The purpose of this is to eliminate the risk of key shares being compromised on old or forgotten devices.
Users can also configure standalone transaction passwords, which ensure that key shares held by the Bitget server can only be used to complete signatures with users’ active consent.
After the failures of centralized players like FTX, self-storage of digital currencies became an important part of the wider ecosystem. In March 2023, hardware wallet maker Ledger raised $109 million to expand its hardware production and explore new product development.
Multisignature is a scheme to protect an account from being compromised by a malicious user by allowing a group of trusted parties to sign a single document, typically by producing a joint signature. Multi-signature signatures are widely used in the cryptocurrency and fintech industry.
Multi-signature wallets are more protected from attacks than regular wallets due to the need to collect the private data of multiple entities in order to hack them. However, multi-signature in Bitcoin is not technically a multi-signature, but just a protection with a number of other separate signatures from users.
Many Bitcoin and Ethereum multi-signature wallets are produced by third parties to provide additional protection to cryptocurrency users. Multiple signatures are often used for corporate purposes to ensure that a transaction is approved by management prior to initial initiation.