Bitget Introduces New Wallet Service Leveraging MPC for Enhanced Security
Summary:
Bitget, a cryptocurrency exchange platform, has unveiled a new wallet service using multi-party computation (MPC) for improved security and asset management. The MPC wallet removes the mnemonic phrases system for key storage and replaces it with a password-based authentication, aiming to reflect the user experience found in traditional Web2 products. The wallet's features include a 2/3 threshold for transaction authorization, secure storage of the last key share on a backup cloud server, and a reshare mechanism for replacing key shares on older devices. Users can also set up standalone transaction passwords for heightened security.
Bitget, a platform for cryptocurrency exchange and derivatives, has introduced a new wallet service with improved security and asset management features, thanks to the use of multi-party computation (MPC). This enhancement follows the release of Bitget's account abstraction wallet service that employs the Ethereum scaling protocol Starknet, which was introduced in July 2023. MPC is a technology that enhances the security of key generation through its distributed nature, enabling multiple keys to be shared across various locations under the control of different parties. This method makes it mandatory for owners of these distributed keys to authorize and sign transactions.
The new MPC wallet offers a so-called 'mnemonic-free' experience, doing away with the existing practice of users having to keep a record or remember mnemonic phrases and private keys. Bitget now has a password-based authentication system for managing assets and this innovation substantially reduces the chance of exposure of a single-point private key. Bitget's development is designed to echo the user interaction common in traditional Web2 products and services.
In terms of technical specifications, Bitget’s MPC wallet utilizes a threshold signature scheme, relies on secure 'large prime numbers' and incorporates a 2/3 threshold setup. This latter feature is crafted to address consumer-grade users’ needs by necessitating only two-thirds of the total key shares to sanction a transaction. A unique feature of the wallet is the last key share being stored on a backup cloud server, which employs a higher degree of decentralization and security. Additionally, the MPC wallet includes a reshare mechanism that replaces old device key shares with those from new devices, mitigating the risk of compromise on outdated or abandoned devices.
For increased security, users have the option to set a distinct transaction password that ensures key shares on Bitget’s server can only finalize signatures with the explicit authorization of the user. The realm of self-managed cryptocurrency storage has gained importance in the light of significant failures from centralized players, such as FTX. Ledger, a manufacturer of hardware wallets, raised $109 million in March 2023, for the purpose of increasing its production capabilities and exploring new product developments.
Published At
10/23/2023 1:33:01 PM
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