Bitget cryptocurrency exchange and derivatives platform has launched a new wallet service utilizing multiparty computation (MPC) to enhance user security and key management.
Bitget has employed MPC to revamp private key and asset management after introducing its account abstraction wallet service powered by the Ethereum scaling protocol Starknet in July 2023.
MPC technology employs a distributed key generation mechanism that disseminates multiple key shares to various locations under the control of multiple parties. This enables a process that necessitates the signature and authorization of the transaction by the owners of distributed private key shares.
The MPC wallet offers a “mnemonic-free” user interface, eliminating a long-standing industry standard that requires users to memorize or store mnemonic phrases and private keys. Bitget claims that password-based authentication for asset management removes the danger of single-point private key exposure.
The exchange explains that the development intends to replicate the user experience of conventional Web2 products and services. Bitget’s MPC wallet employs a threshold signature scheme, secure “large prime numbers,” and a 2/3 threshold configuration.
The latter feature is designed for consumer-grade users, requiring only two-thirds of the total key shares to sign a transaction authorization signature.
A backup cloud server stores the most recent key exchange securely, assuring high decentralization and security.
The MPC wallet also introduces a reshare mechanism that invalidates key shares on older devices when connected to a newer machine. This is intended to eliminate the possibility of compromised sensitive data on obsolete or neglected devices.
Users can also configure transaction-specific credentials, which ensure that key shares held by Bitget’s server are only used to complete signatures with the users’ explicit permission.
In the wake of significant failures of centralized players such as FTX, cryptocurrency self-storage has become an increasingly vital part of the greater ecosystem.
Ledger, a manufacturer of hardware wallets, raised $109 million in March 2023 to increase its hardware production and investigate the creation of new products.
