Bitget Launches MPC Wallet to Enhance Security and Key Management

A New Wallet Service

Cryptocurrency exchange Bitget has unveiled a new wallet service that aims to improve security and key management for users. The wallet service utilizes multi-party computation (MPC) technology to enhance the protection of private keys and assets.

Revolutionizing Key Management

Bitget has implemented MPC technology, which utilizes a distributed key generation mechanism. This distributes multiple key shares to different locations controlled by multiple parties. The process requires the owners of these distributed private key shares to sign and authorize transactions, enhancing security.

Mnemonic-Free User Experience

The MPC wallet offers a user-friendly experience by eliminating the need for users to store or memorize mnemonic phrases and private keys. Instead, assets are managed using password-based authentication, minimizing the risk of single-point private key exposure.

Traditional User Experience

Bitget's MPC wallet is designed to replicate the user experience commonly found in traditional Web2 products and services. At a technical level, the wallet utilizes a threshold signature scheme, secure "large prime numbers," and a 2/3 threshold setup.

Enhanced Security Measures

The MPC wallet includes a 2/3 threshold setup, ensuring that a minimum number of signatures are required to authorize a transaction. Additionally, the last key share is stored on a backup cloud server, enhancing decentralization and security.

Improved Device Management

The MPC wallet introduces a reshare mechanism that invalidates key shares on old devices when newer devices are connected. This mitigates the risk of compromised key shares on outdated or forgotten devices.

Configurable Transaction Passwords

Users can configure standalone transaction passwords, ensuring that key shares held by Bitget's server can only be used with the active consent of the users. This adds an extra layer of security to the wallet service.

Importance of Cryptocurrency Self-Storage

With the increasing failures of centralized players in the cryptocurrency ecosystem, self-storage solutions have become crucial. Bitget's MPC wallet aims to enhance security and key management for users, offering a reliable alternative to traditional storage methods.

In March 2023, hardware wallet manufacturer Ledger raised $109 million to boost hardware production and explore new product offerings, highlighting the growing importance of secure self-storage solutions.