Bitget, a platform for trading cryptocurrencies and derivatives, has released a new wallet service that use multi-party computation (MPC) to bolster user security and key management.
The company Bitget has hired MPC to revamp private key and asset management after releasing their account abstraction wallet service based on Ethereum scaling protocol Starknet in July 2023.
numerous-party computation (MPC) technology makes use of a distributed key generation technique to disperse numerous key shares to various places under the control of various actors. Because of this, a procedure is possible in which the transaction can only be finalized with the approval of all of the owners of the distributed private key shares.
The “mnemonic-free” user interface of the MPC wallet replaces the previous practice of having users memorize or save mnemonic phrases and private keys. Bitget promotes the use of password-based authentication for managing assets since it removes the possibility of a single private key being compromised.
The development, according to the trade, is meant to resemble the familiar Web2 product and service user experience. Bitget’s MPC wallet employs a threshold signature mechanism, safe “large prime numbers,” and a 2/3 threshold configuration for further security.
The latter feature is tailored at consumer-grade customers, as it introduces a minimum quantity for signature authorization of just two-thirds of the total key shares.
To further increase decentralization and security, the most recent key sharing is saved on a secondary cloud server.
When a new device is linked to the MPC wallet, the previous device’s key shares are rendered invalid. The goal is to eliminate the possibility that sensitive information may be stored on obsolete or forgotten devices, which might then be exploited.
Individual transaction passwords set by users guarantee that Bitget’s server-held key shares may be used to finalize signatures only with the users’ explicit permission.
Since significant centralized firms like FTX have failed, cryptocurrency self-storage has risen in importance within the broader ecosystem. Manufacturer of hardware wallets Ledger received $109 million in March 2023 to ramp up hardware manufacturing and investigate additional product possibilities.
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