Bitget, a prominent cryptocurrency exchange and derivatives platform, has introduced a cutting-edge wallet service that leverages multiparty computation (MPC) technology to enhance both security and user experience. This innovative development comes hot on the heels of Bitget’s successful launch of its account abstraction wallet service, powered by Ethereum’s scaling protocol, Starknet, earlier this year.
MPC technology has set a new standard in private key and asset management. By utilizing a distributed key generation mechanism, multiple key shares are distributed to various locations under the control of multiple parties. This sophisticated approach requires the collaboration of key shareowners to sign and authorize transactions, thereby enhancing security.
One of the most remarkable features of the MPC wallet is its “mnemonic-free” user experience. This eliminates the long-standing industry practice of users having to store or memorize mnemonic phrases and private keys. Instead, assets are managed using password-based authentication, a game-changer that effectively eliminates the risk of a single-point private key exposure.
Bitget is going the extra mile to provide users with a familiar experience akin to traditional Web2 products and services, all while incorporating the latest MPC technology. At its core, Bitget’s MPC wallet relies on a threshold signature scheme, employs secure “large prime numbers,” and is distinguished by its 2/3 threshold setup.
The 2/3 threshold setup, aimed at consumer-grade users, is a game-changing addition that demands authorization from just two-thirds of the total key shares to complete a signature for transaction approval. The last key share is securely safeguarded on a backup cloud server, adding an extra layer of decentralization and security.
Moreover, the MPC wallet introduces a reshare mechanism designed to nullify key shares on older devices when newer ones are connected. This crucial feature mitigates the risk of key shares being compromised on outdated or forgotten devices, ensuring that users’ assets remain secure.
For added peace of mind, users can configure standalone transaction passwords. This means that key shares held by Bitget’s server can only be utilized to complete signatures with the explicit consent of the users, providing an additional layer of security.
Bitget’s groundbreaking initiative addresses a growing need within the cryptocurrency ecosystem for secure self-storage solutions, especially in light of the notable failures of centralized players like FTX. In March 2023, leading hardware wallet manufacturer Ledger raised a substantial $109 million to ramp up hardware production and explore the development of new products. Bitget’s MPC wallet is a clear indication that the industry is making significant strides to enhance the security and convenience of cryptocurrency asset management.