In the ever-evolving landscape of cryptocurrency, security, and ease of use remain paramount concerns for both seasoned investors and newcomers to the space. Bitget, a prominent player in the industry, has taken a significant stride towards addressing these concerns. They have released the 2/3 private key sharding MPC wallet.

This innovative development signifies a noteworthy milestone in the field of digital asset management. It also highlights Bitget’s dedication to improving the safety and accessibility of cryptocurrencies for users worldwide.

Bitget is trying to give users better security and key management. As a result, the cryptocurrency exchange and derivatives platform has introduced a new wallet service that uses multiparty computation (MPC).

Bitget launched its account abstraction wallet service, powered by the Ethereum scaling protocol Starknet, in July 2023.

Several key shares are distributed to various locations under the control of several parties. This distribution is done via a distributed key generation technique used by MPC technology. This technique facilitates a procedure that calls for the signature and authorization of the transaction from the owners of distributed private key shares.

What Does The Bitget MPC Wallet Do?

The MPC wallet offers a “mnemonic-free” user experience. It has done away with the long-standing industry norm that required users to store or commit private keys and mnemonic phrases to memory. Instead, Bitget claims that asset management is accomplished using password-based authentication. The authentication removes the possibility of a single-point private key exposure.

The initiative is intended to replicate the user experience commonly found in conventional Web2 products and services, according to the exchange. Technically speaking, Bitget’s MPC wallet has a 2/3 threshold configuration, secure “large prime numbers,” and a threshold signature technique.

Bitget has Released the 2/3 Private Key Sharding MPC Wallet

The latter introduces a minimum number for signature authorization, requiring only two-thirds of the total key shares to complete a signature to allow a transaction. It is aimed at consumer-grade consumers. To ensure maximum security and decentralization, the final key share is safely kept on a backup cloud server.

A reshare technique that invalidates key shares on outdated devices when connected to newer devices is also introduced by the MPC wallet. By doing this, the possibility of essential shares being compromised on out-of-date or forgotten devices is reduced.

Key shares maintained by Bitget’s server can only be used to finalize signatures with the users’ active authorization. To guarantee this, users can also specify independent transaction passwords.

Following the significant collapses of centralized entities such as FTX, cryptocurrency self-storage has grown in importance within the broader ecosystem. Ledger, a maker of hardware wallets, raised $109 million in March 2023 to expand its hardware production and investigate developing additional products.

Bitget’s release of an MPC wallet with 2/3 private key sharding is a significant step towards enhancing the security and usability of cryptocurrency wallets. 

In conclusion, this innovative approach combines the benefits of multi-party computation (MPC) for safeguarding private keys with the resilience of 2/3 sharding. This ensures that users have improved control over their assets and protection against potential risks. It underscores Bitget’s commitment to advancing the cryptocurrency space. It also shows their desire to provide users with a more secure and user-friendly wallet solution.