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- 1 Understand how MPC Wallets provide data security.
- 2 MPC Wallet creation using web3 application and blockchain technology.
- 3 Popular MPC Wallets out there.
The Multi-Party Computation Wallets or MPC Wallets have existed since the 1980s, have surfaced and been accepted by the wider community in recent years. But due to its technical nature and methodically advanced cryptographic protocol, the general public is not able to develop their conscience around the topic easily.
To understand how these wallets are helping investors and traders in keeping their digital assets safe and secure in the era where hacking is a prominent digital issue, it is necessary to cast light on its origin.
Since the introduction of cryptocurrency in the form of Bitcoin in 2008 through whitepaper publication, the meta world created using blockchain has surpassed every human thought who first were reluctant in dealing and using currencies in digital format.
Earlier, during the times when cryptocurrency was still in its developing stage, and not many people understood the evolving technology, cryptographers like David Chaum were putting their mind and soul in developing a medium through which people of the world could transfer funds in the form of tokens together with other private information, which later was introduced as ecash. The similarities between ecash and modern day cryptocurrency is striking.
With technology advancing with time moving ahead, the establishing of methods to secure passwords and digitally stored assets became an issue that needed to be discussed and worked upon. And thus, human efforts were directed in creating softwares that could complement the structures and institutions like blockchain tech and decentralized applications (DApps).
What is MPC Wallet and how has it helped the evolution of securing Cryptically Stored Assets and Information?
MPC Wallets are the latest development associated with blockchain technology which are a set of protocols that enables the users to minimize the risk of fund displacement and loss of private key. Technically, MPC Wallet is a cryptographic protocol that enables multiple parties to perform necessary actions on their data without them revealing any private information to each other.
This method thus, is a fund securing tool through which multiple parties or individuals having common public keys are provided with a differentiated set of private keys, each unique to the other, to access funds and enter into transactions. This way, no-one has complete control over the functioning of the cryptocurrencies.
Using a Multi-Party Computation Wallet not only provides decentralization, but also provides security as it requires individuals to sign from different devices to complete their respective functions. This makes a single user limited to a particular extinguishable set of functions and money is thus kept safe from an individual loss of private key or them trying to sell off all the funds available in the account.
Multi-Party Computation Wallets or MPC Wallets provide some key advantages that are not present in wallets using single key or multi-signatures. These advantages not only put MPC Wallets ahead of its rival wallets but also make it more reliable and innovative.
Flexibility: MPC Wallets provide its users with a greater degree of autonomy as its in-built features allows the users to customize their thresholds to different values, recipient addresses, frequencies et cetera. Due to its hyper-dynamic policies, individuals can easily manage their assets.
Easy Utility: Having an interface that is user-friendly which provides seamless experience while navigating through the toolnet available in MPC Wallets, the users are able to easily understand how its system works and can further input their own designed codes into the programming structure of the wallet.
Legal Compliance and Governance: Most of the available MPC Wallets are flexible and adaptable to the working of various blockchains which do not require major tampering to other blockchain networks. Just not this, these wallets are also designed in such a manner that these do not usurp the legal conditions being put on them and are able to excellently perform under strict governance. Legal compliance rules like Know Your Customer and Anti-Money Laundering policies can be complied with by the users upon them verifying their identities and fund transfers.
Data Privacy and Single Point of Failure: Coupled with features that make MPC Wallets best available tools for distributing risk and enabling decentralization, these wallets also have a feature which does not let other admitted parties to know one’s credentials and private key. This distribution of private keys is also known as “shares” to the part of the public key which no external party can acquire or act upon, thus providing excellent data security.
Another pro of these wallets is that a single person in the blockchain using MPC Wallet cannot initiate a single transfer of all the funds.
Some Major MPC Wallets to Use
Coinbase: This Centralized Exchange (CEX) is one of the largest crypto platforms which harbors more than 90 cryptocurrencies and is majorly used by institutions or HNI Investors who regularly require access to CoinBase Pro Trading platforms.
UniPass: It is a non-custodial smart contract wallet that allows users to execute transfers of money without paying any gas fee. Along with this, having the cryptic feature of smart contracts, it is highly reliable and supportable to various blockchains like Ethereum, Avalanche, Polygon.
Qredo: This web application enables the users to make their digital asset portfolio management reliable, speedy and secure. Using this wallet also allows cross-chain liquidity of various cryptocurrencies. Qredo also supports more than 20 cryptocurrencies that are backed by blockchain, upon which institutions can trade and invest.
MPCVault: This web3 application is a multi-signature, multi-chain tool that provides its users a seamless experience in keeping their assets safe with the help of cryptographic programming. This tool is mainly used by big houses and businesses including trading firms, web3 projects and VCs.
Being a personalized wallet, this tool can be programmed as per individual’s preference and needs. For this, the user has to create a dedicated key programme that can easily identify public key and private keys and also is flexible in its functioning. Next step is to add a signing facility which will ensure that only identified users are able to login to bring more sophistication and data security. After this process has been taken care of, the next step is to add a feature of verification which can be strictly verified using the key information and credentials and private key of the individual. And lastly, the access granting facility is to be given to the individual signing in.
This way, an optimum, self-reliant, and secure MPC Wallet can be put to use which will revolutionize the usability of smart contract wallets into the domains of blockchain cryptocurrencies.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
