What Is a Multi-Party Computation Wallet: A Complete Guide

Cryptocurrency wallet security has become a hot topic!. Some solutions offered to this problem include storing your private keys in cold storage and using multisig wallets. However, these solutions still lack the expertise.  

MPC wallets are a new advanced approach for securing cryptocurrency securely and effectively. Multi-party computation periodically, known as secure multi-party computation, is a cryptographic technology designed to ensure the safety of your digital assets and private information. MPC Wallet secures your confidential information by splitting them into various parts.

This article explains what MPC wallets are, their benefits, use cases and how to create one. Let us begin!!

What is an MPC Wallet?

An MPC crypto wallet is a type of wallet which requires more than one party to approve transactions. Here the process of generating keys and creating digital signatures runs through various parties operating a distributed computing protocol that’s why it is called multi-party computation.

It offers robust security features to individuals, firms, financial institutes and everyone that manages digital assets. These digital wallets use advanced cryptographic and distributed computing to store and manage private keys that access and manage your digital cryptocurrency assets.

Since the MPC wallet divides private keys into multiple shares and distributes them among various parties, it becomes a task for one party to gain unauthorized access to the assets. The wallet requires approvals from other parties before executing a transaction.

What are the benefits of MPC?

Different benefits of MPC wallets include enhanced data privacy, high accuracy levels, decentralized, free from hacking, safe and secure key management, etc.

1. Enhanced Security Features:- MPC wallets provide enhanced security against threats and hacks compared to traditional cryptocurrency wallets by distributing the private key across multiple parties. 
2. Data Privacy:- MPC wallets allow data encryption, so no private data is leaked or compromised. 
3. Low Gas Fees:- These wallets are cost-effective as they never increase higher fees, whereas in traditional crypto wallets gas fee is calculated on the basis of the number of operations performed to complete transactions on the blockchain
4. High Accuracy:- It provides high-accuracy results for different computations with the help of cryptography. 
5. User-Friendly:- It helps users access a wide range of web3 ecosystems, including buying and selling Non-Fungible tokens on various NFT marketplaces in a secure manner.

How to Create an MPC Wallet?

If you are thinking about getting an MPC crypto wallet, the first step towards this project is researching the existing projects. Understand the various underlying technologies and cryptographic techniques. Plan the features and functionalities of your wallet. Find a suitable crypto wallet development company which can meet your requirements.

Steps to follow:-

1. Research:- To build an MPC wallet, start with researching and analyzing the application. Plan various elements you want to add, such as feasibility, features and functionalities and include them in the official documentation.
2. Choose a language:- Select the programming language you want to use to develop your MPC crypto wallet. We offer customized cryptocurrency wallet development services to fulfill the users’ requirements.
3. Application Design: Develop an interactive user interface that offers a seamless user experience using appropriate design practices. It includes options for creating, managing keys, approving transactions and viewing account balances.
4. Testing:- The next step is the testing stage. Test your wallet thoroughly to find errors to check its functioning. The process keeps going until the application is error and bug-free.
5. Launch, Maintenance and Security:- After completing the development process, continuously monitor and maintain to ensure its functioning. After expansive promotions and marketing, launch the wallet for public use.

Use Cases of an MPC Wallet

1. Safe and Secure Transactions:- Secure transactions that require a high level of privacy, such as those involving private data or any financial information.
2. Key Generation and Management:- Key generation and management for cryptocurrency wallets are the most popular use case. Since the security of the wallet relies on the security of the private key.
3. Secure Data Sharing:- Share sensitive and personal information securely and confidentially.
4. Authorized Signature:- Digitally signs traditional documents with MPC crypto wallet. 

Conclusion

MPC can enhance the security of an application and has the advantage of eliminating a single point of failure. MPC enhances privacy even after allowing shared computation between various parties by not revealing their inputs.

Blockcoders provides custom white-label wallet solutions for your project as per your requirement. If you are planning to develop a custom crypto wallet partner with Blockcoders.!

Connect with us or Get a free demo.! We look forward to hearing from you.