Cryptocurrency exchange Bitget has introduced a Multiparty Computation (MPC) wallet, featuring advanced security measures and a user-friendly approach to asset management.
In a bid to bolster the security and key management for its users, Bitget, a prominent cryptocurrency exchange and derivatives platform, has unveiled a new wallet service employing Multiparty Computation (MPC) technology. This innovative approach, following the launch of their account abstraction wallet service utilizing Ethereum scaling protocol Starknet in July 2023, aims to revolutionize private key and asset management.
Multiparty Computation (MPC) technology employs a distributed key generation mechanism that distributes multiple key shares to various locations controlled by multiple parties. This groundbreaking approach enables a transaction authorization process that necessitates the involvement of the owners of these distributed private key shares to sign and authorize transactions, significantly enhancing security.
Bitget’s MPC wallet enhances user security
One notable feature of Bitget’s MPC wallet is the removal of the traditional industry standard of relying on users to store or memorize mnemonic phrases and private keys. Instead, assets are managed through password-based authentication. This strategic shift not only simplifies the user experience but also eliminates the risk associated with a single-point private key exposure.
Bitget’s overarching goal is to provide users with a seamless experience akin to traditional Web2 products and services. At a more technical level, the MPC wallet is built upon a threshold signature scheme, utilizing secure “large prime numbers” and featuring a 2/3 threshold setup.
This setup caters to consumer-grade users, requiring just two-thirds of the total key shares to complete a signature and authorize a transaction. The final key share is securely stored on a backup cloud server, ensuring an elevated level of decentralization and security.
In a bid to mitigate risks associated with key shares on outdated or forgotten devices, Bitget’s MPC wallet introduces a reshare mechanism. This feature invalidates key shares on older devices when newer devices are connected, bolstering overall security and reducing the potential for compromise.
Users can configure standalone transaction passwords, ensuring that key shares held by Bitget’s server can only be used to complete signatures with the active consent of the users. This additional layer of security places control firmly in the hands of the asset owners.
The launch of Bitget’s MPC wallet underscores the increasing significance of cryptocurrency self-storage within the broader digital asset ecosystem. Recent high-profile failures of centralized players like FTX have prompted a renewed focus on secure and user-controlled storage solutions
In a related development, hardware wallet manufacturer Ledger raised a substantial $109 million in March 2023. This funding injection is earmarked for expanding hardware production and exploring the development of new products. Ledger’s unwavering commitment to security and user-friendly solutions aligns with the broader industry’s push towards enhancing the safety of cryptocurrency assets.
