An approximated amount of 100 billion dollars of Bitcoin became unrecoverable due to private key mismanagement.
With the rise in technological advancements and the proliferation of the internet, data security and privacy have become a cause of concern among enterprises, especially when shared among distributed networks. However, these issues have been well handled by trustworthy solutions like Multi-Party Computation(MPC) and have been exclusively implemented in the context of Blockchain applications.
Here is a simple example that will help you comprehend MPC better.
Suppose three blockchain developers have launched a Bitcoin wallet start-up and wish to know their average salary. They want to keep their salaries private from each other or a third party during the computation process. Their salaries would be calculated using MPC based computation process, keeping the sensitive and private information hidden during the process. During the process, MPC would work on a cryptographic process known as “Additive Secret Sharing” that divides and shares the secret with the independent parties. The party would know the salary figure, but the employees won’t know about it.
MPC protocol works on two main aspects:
Once the protocol executes, it is impossible to plan the private information. If a bigger group thinks of sharing the information or does something different from the instructions, MPC won’t allow it and would ask the honest parties to give a wrong output or will leak their secret information.
The blog highlights significant MPC applications known as MPC crypto wallets and how to create them from scratch.
MPC was introduced in 1980 by Chinese Computer Scientist Andrew Yao. He initially implemented a two-party computation process and came up with three-party computation later on. Below is the detailed sequence of MPC evolution:
MPC crypto wallet keeps cryptos and digital assets. The platform adopts multi-party computation, offering a robust security guarantee to individuals, financial institutions, enterprises, and government agencies.
MPC is a technical product and has become enterprises’ preferred choice due to enhanced security. Even more, enterprises are venturing into this evolving segment and harnessing their earning capabilities with the assistance of an MPC wallet development company. Whether you are a start-up or an established firm, develop a robust and scalable MPC wallet by consulting skilled wallet developers.
MPC wallets are not the first generation, as Multi-Signature wallets were introduced before them. Before diving deeper into multi-signature wallets, let’s determine how they differ from Multi-Signature Wallets:
MPC Vs. Multi-Signature Wallets
A Multi-Signature wallet needs a unique digital signature and authenticates the transaction by adding more than one private key. On the contrary, in MPC’s case, a single private key is distributed among multiple parties. In multi-sig, multiple parties are involved, each holding its private key, which most of them must sign to complete the transaction.
Bitcoin network came up with the concept of Multi-Signature in 2012, and its popularity has been growing far and wide since then. The main agenda is to improve the security of the wallet.
MPC Crypto wallets offer an array of benefits to the owners as well as wallet users that have been listed as follows:
Data is generally distributed among trusted third parties.
Data remains encrypted in static or transit mode, thereby preventing the revelation of private information.
It adopts cryptographic computations, thereby producing extremely precise results.
Private keys are kept in multiple places.
Hackers are supposed to attack multiple parties accessing them at different systems and locations.
Users can keep their assets online and don’t need cold storage devices to keep them.
Prominent institutions like Revolut have already switched to MPC, thereby eliminating the need for keys to protect them from internal or external issues.
With the surge in consumer-driven product innovations, MPC crypto wallet owners get a chance to harness the power of the Web3 ecosystem. For instance, purchasing and selling NFT Tokens from popular marketplaces has become simpler and safe.
Several Web3 wallets have started utilizing the potential of MPC crypto wallet development and have been listed below:
Developing an MPC wallet requires sound domain knowledge and technical expertise. The process of developing an MPC wallet has been divided into five steps and has been covered in the upcoming paragraphs:
It’s the first and most crucial step. The MPC Crypto wallet development services will comprehend the market conditions, analyze the competitors, and prepare a list of features and functionalities to attract the audience. During this phase, risks will be determined, and solutions will be recommended accordingly.
#Step2 : Designing & Development
Make sure the UI/UX design is stunning, and emphasis must be placed on responsiveness. Then only, it will be able to grab the attention of traders and enterprises. In addition, the developers will be integrating features and functionalities into the platform.
#Step 3 : Writing Smart Contracts
Numerous Smart Contracts are devised and thoroughly tested to ensure the smooth functioning of the wallet.
#Step 4 : Quality Assurance
Testing is the second last step of the MPC cryptocurrency wallet development process, and if everything runs smoothly, then only the wallet can be launched successfully. It’s the phase when the bugs are fixed, performance and security are checked, and quality standards are met carefully.
#Step 5 : Deployment & Maintenance
Once the testing and debugging process end, the process heads to the last phase, in which the platform is made available for public use. However, the process continues after deployment as the developers regularly perform maintenance and updates.
Antier offers top-notch MPC crypto wallet development services to global enterprises. Contact their seasoned Blockchain experts who possess sound domain knowledge and technical expertise that they use while developing the MPC wallets. Their wallets are packed with high-graded security and scalability. Furthermore, the wallet features will be customized based on your preferences. Schedule a demo with our subject matter team today!