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3 Best MPC Wallet Providers To Safeguard Your Assets

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In this Article, We are sharing the information about Best MPC Wallet Providers.

It’s 2023 and crypto businesses are yet to have a viable solution to ever-increasing cases of cyberattacks, bridge hacks, and wallet breaches. As more and more users jump on the crypto bandwagon, finding a long-term security solution is paramount for the health of the crypto market. Here we will talk about Best MPC Wallet Providers list and their features.

The global crypto market cap already exceeds $1.22 trillion and is bound to grow manifold with millions of new investors joining the market. We seek to find a viable solution to ever-increasing hacks in the crypto market. But first. Let us understand how serious the problem is.

How Serious Is The Hacking Problem In The Crypto Market

2022 was worse in terms of the amount of money stolen through wallet breaches and hacks. A whopping $3.8 billion was stolen from crypto businesses in 2022 alone. To put it into perspective, the number was just $0.1 billion in 2016. 

Defi protocols, which emerge as the torch bearers of decentralization and transparency, continue to be the biggest victims of hacks and breaches. DeFi protocols were victims of 82.1% of all cryptocurrency stolen by hackers between 2016-2022. 

Coincidently, DeFi is the fastest-growing sector in the crypto market. While DeFi promises a decentralized global economy, the goal is far from achieved with the clouds of cybersecurity still looming.

Here are some of the top security risks that crypto businesses face: 

Cybersecurity Threats

Cryptocurrencies are highly attractive targets for cybercriminals due to the potential for large financial gains. Businesses in the crypto space must defend against hacking attempts, phishing attacks, malware, ransomware, and other forms of cyber threats that could compromise their systems and access to funds.

Private Key Management

Private keys are essential for accessing and controlling cryptocurrency wallets. If private keys are lost, stolen, or compromised, funds can be irreversibly lost. Proper key management practices, such as cold storage (keeping private keys offline) and secure backup solutions, are crucial.

Insider Threats

The nature of crypto businesses means that employees or insiders could potentially have access to sensitive information or control over funds. Proper access controls, employee training, and monitoring are necessary to mitigate the risk of insider threats.

Social Engineering Attacks

Cryptocurrency users and businesses can be targeted by social engineering attacks, where attackers manipulate individuals into disclosing sensitive information or transferring funds. These attacks can be difficult to defend against, as they exploit human psychology.

MPC Wallets and Custody Solutions?

MPC Wallets and Custody Solutions 1
MPC Wallets and Custody Solutions?

Crypto custody is a concept that refers to the process of securing your funds against cyberattacks and breaches. Since DeFi businesses are so busy building a futuristic solution, and stats show that they have failed to curb the rising cases of cyberattacks, it is only wise to outsource asset security to a third-party, most probably an expert in asset management and wallet security. 

Traditionally, custody solutions guard users’ private keys. But for institutional clients with a humongous user base, managing private keys is never a viable solution. Thus emerges the concept of MPC (multi-party custody) wallets. 

Multi-party wallets use cryptographic protocols to introduce a game-changing innovation, i.e. splitting and distributing multiple private keys among multiple parties without revealing them to others. Initially, innovators tried to overcome the challenges of single-key wallets with multi-sig wallets. However, multi-sig wallets also have certain limitations and private keys can be vulnerable to theft or misuse. 

MPC wallets address these concerns by using advanced cryptographic techniques to distribute the signing authority across multiple parties without ever revealing the individual private keys. Instead of relying on a single entity or a predefined set of keys, MPC wallets leverage a distributed network of nodes, each holding a share of the secret key.

Decoding The Working On MPC Wallets

Here’s how MPC wallets typically work:

Setup

A group of participants generates their individual secret shares of a private key using cryptographic protocols. None of the participants has access to the complete private key at any point.

Transaction Signing

When a transaction needs to be executed, a certain threshold of participants collaboratively combines their secret shares to generate a transaction signature. The threshold is predefined, and it ensures that a specific number of participants must cooperate to sign any transaction.

Transaction Verification

The signature generated through the MPC process is indistinguishable from a regular single-key signature. It can be verified by anyone using the public key derived from the aggregated secret shares.

When you want to do a transaction (like sending some cryptocurrency to someone), a group of participants combines their secret pieces of the key to create a unique signature for the transaction. This is necessary to approve or authorize the transaction.

Benefits of MPC Wallets

Benefits of MPC Wallets
Benefits of MPC Wallets

While it is self-explanatory why MPC wallets intrigue innovators and investors, here are some obvious advantages of using MPC wallets:

Decentralization

MPC wallets do not require trusted third parties to access or store private keys. Instead, private keys are distributed among multiple parties involved in the MPC protocol. This reduces the risk of centralization, corruption or collusion which could compromise the security or availability of stored assets.

Data Privacy

MPC wallets also protect the privacy of users’ confidential information. The wallets do not reveal private information to other parties involved in the protocol, which ensures confidential data can only be accessed with the consent or knowledge of the user.

High Accuracy

MPC wallets offer high accuracy in cryptography operations, such as address generation, signature verification, and transaction signing. This means operations are performed without any errors or inconsistencies.

Removes Single Points of Failure

MPC wallets eliminate the single point of failure issue, that may exist in other types of wallets like hardware wallets. These wallets may suffer from theft or loss of private keys, unavailability of key parties, device malfunction, or hacking and phishing attacks. MPC wallets avoid these issues by distributing the private keys among multiple parties, which makes it harder for malicious actors to execute their plans.

Scalability

MPC wallets enable scalability by allowing users to add or remove parties from the MPC protocol without affecting performance or security. Users can customize the functionality of the wallet depending on their preferences and requirements. For example, a user who seeks advanced security can add more parties to the protocol.

Flexibility

MPC wallets offer flexibility by enabling dynamic policies and workflows for managing digital assets. Users can set different thresholds for authorizing transactions depending on numerous factors like destination address, amount, frequency, and more. Thresholds can be modified anytime without affecting transactions, and contingency plans can be created in case parties become unavailable.

Compliance

MPC wallets support compliance with global regulations and industry standards like AML and KYC requirements. Users can verify identities and sources of funds before initiating transactions complying with regulations. MPC wallets are also compatible with audit and reporting obligations by providing transparent records and logs of transactions, in addition to following security and governance industry best practices.

Overall, MPC wallets provide several benefits such as added security, privacy, flexibility, compliance, and scalability in managing digital assets. With a small learning curve, using an MPC wallet could potentially help protect against malicious attacks and diversify digital asset management.

But here’s the trick – none of the participants have access to the complete secret key. It’s like a puzzle with each participant having access to one piece of that puzzle. Once a transaction is authorized, anyone can check it or verify it using a special code derived from all the secret pieces. That’s how MPC ensures increased security of your crypto assets.

Top 3 Best MPC Wallet Providers You Need To Know About

Top MPC Wallet Providers To Safeguard Your Assets

ZenGo Wallet

ZenGo is probably one of the most popular and one of the best MPC Wallet Providers out there. It creates a mathematical ‘secret share’, with half of it encrypted and stored on the user’s smartphone while the other half is stored on ZenGo’s servers. This unique approach ensures that there is no single point of failure and that even if a hacker gains access to one-half of the secret share, they still cannot access the wallet without the other half. 

In addition to the MPC technology, ZenGo offers three-factor authentication (3FA), a color-coding system for transaction risk levels, and support for multiple cryptocurrencies. But what does three-factor authentication mean? It means ZenGo offers three ways for users to recover their accounts if the device is lost or damaged – email address, 3D biometric scanning, and a ZenGo recovery file. Besides, it also has a color-code system for transactions – green, yellow, and red. These color codes categorize transactions into different risk levels. 

However, ZenGo does not allow you to add custom tokens. But on the upside, you can directly buy cryptocurrencies from the wallet, using its in-built gate. You can use debit/credit cards, e-wallets, and bank wires to make a purchase. With 70+ cryptocurrencies supported on the platform, ZenGo is arguably the best MPC wallet.

Pros

  • The top-performing Best MPC Wallet Providers for cryptocurrencies in 2023.
  • Available for free download on iOS and Android devices.
  • Utilizes a secure secret share code distributed between the user’s smartphone and ZenGo’s server.
  • Offers three-factor authentication for account recovery.
  • Supports more than 70 cryptocurrencies, including Bitcoin.

Cons

  • Lacks an integrated staking tool.
  • Does not currently support major cryptocurrencies like Cardano, Solana, Tron, Polkadot, and others with large market capitalization.
  • No desktop software available for use.

Liminal

Liminal is an enterprise-grade custody solution that offers both multi-sig and MPC wallets to its users and clients. Through its robust architecture, Liminal enables crypto businesses to scale and manage their digital assets securely with the plug-and-play wallet.

True to its enterprise-grade label, Liminal also allows projects to define customized policies and assign roles to users based on their responsibilities. It helps crypto businesses eliminate risks associated with digital asset transfers, such as cyber-attacks, internal collusion, and human error.

Liminal supports 18+ different chains, including Bitcoin, Ethereum, Polygon, Solana, BNB Chain, Avalanche, Litecoin, Tron, Arbitrum, Tezos, Polkadot, and Cosmos. It is also the first company to launch the ‘Hot Wallet as a Service’, allowing users to withdraw from hot wallets in a more secure, time-efficient, and automated manner.

With $550M+ assets under its protection, Liminal has securely facilitated transactions worth over $6,000 million. It has helped crypto businesses save over 1,000 manual hours and processed $600M+ wallet refills.

Pros

  • Eliminates roadblocks with its 3-step easy set-up process
  • It removes human orientation errors
  • Liminal offers interoperability for cross-chain transactions and seamless wallet connectivity for lightning-fast deposits and withdrawals
  • Liminal promotes self-custody through its hybrid integration of HSM, Multi-Sig, and MPC Wallet architecture, offering impenetrable key management
  • Liminal also offers insurance coverage of $50 million for partner projects.

Cons

  • Lack of an integrated staking tool

OKX Wallet

If you have been in the crypto space for some time now, you might already have heard of OKX Wallet, or the brand OKX. OKX is one of the largest cryptocurrency exchanges globally. The exchange recently launched its MPC wallet to offer more secure asset storage services to its users. 

Any user can download the OKX wallet to access the MPC feature. The Best MPC Wallet Providers is a non-custodial application operating completely separately from the OKX exchange. Meaning decentralization is an integral part of the OKX MPC wallet.

You can store, trade, earn, and manage crypto, NFTs, and digital assets across 50+ blockchains using OKX MPC. It comes with built-in access to multi-chain DEX, NFT Marketplace, Earn, and thousands of Dapps. 

If you are an Android or IOS user downloading the OKX MPC for the first time, You need to select ‘I Don’t Have a Wallet’ and choose the ‘Keyless Wallet’ option. This will then take you through the MPC security processes. However, you need to set up a facial recognition ID and verify your email address to start operating the MPC.

The aforementioned processes are critical to recovering your MPC wallet in case your phone is lost or stolen. Another outstanding feature of the OKX MPC wallet is its in-built aggregator that bridges to over 200 decentralized exchanges, helping you trade tokens instantly.

Pros

  • Ranked as the top MPC Wallet Providers for maximizing crypto interest rates.
  • Seamlessly connects to over 200 decentralized exchanges (DEXs) to identify and access the most attractive APY yields.
  • Utilizes secure and convenient email and facial recognition methods for account recovery.
  • Extensive support for more than 50 blockchain networks, ensuring compatibility with various cryptocurrencies.
  • Enables instant token swaps at the most favourable exchange rates for enhanced trading efficiency.

Cons

  • The absence of fee visibility until swap orders are placed may lead to uncertainty for users regarding transaction costs.
  • It’s worth noting that the highest APYs offered might sometimes be associated with limited liquidity, which could impact the ease of trading large volumes.

FAQs Related to MPC Wallet Providers

What is an MPC wallet provider?

An MPC wallet provider is a company or service that offers wallets using Multi-Party Computation technology. These wallets provide enhanced security and privacy features by allowing multiple parties to jointly compute operations on private data without revealing that data to each other.

Are MPC wallet providers open-source?

Some MPC wallet providers may offer open-source solutions, while others may have proprietary software. Open-source MPC wallets allow the community to inspect and verify the code for security and transparency.

 Can I switch to MPC wallet providers without losing my funds?

Switching MPC wallet providers without losing funds depends on the specific wallet and provider. Some wallets may allow you to import private keys or recovery information into a new wallet, while others may have restrictions. It’s important to research the migration process before switching providers.

Can I use an MPC wallet for all cryptocurrencies?

The compatibility of an MPC wallet with different cryptocurrencies depends on the wallet provider and the specific cryptocurrencies they support. Some MPC wallet providers may support various cryptocurrencies, while others may have limited compatibility.

Conclusion

In an era of increasing crypto hacks and thefts, safeguarding your digital assets has become a paramount concern. The surge in cybercriminal activities, with over $3.8 billion stolen in 198 major crypto theft cases in 2022, underscores the vulnerability of traditional crypto wallets. However, Multi-Party Computation (MPC) wallets offer a revolutionary solution to enhance security and protect against malicious attacks.

So far, ZenGo has stood out as a leading choice, offering robust security features. However, there are some limitations mentioned in the article above.

Liminal overcomes these limitations, offering robust security architecture, customizable policies, and top-notch key management. Its widely accepted MPC wallet and custody solution guarantees total security with its robust security architecture, customizable policies, and top-notch key management.

OKX Wallet, backed by the reputable OKX exchange, also provides seamless access to decentralized exchanges and offers enhanced crypto interest rates.

As the crypto landscape evolves, MPC Wallet Providers like Liminal and OKX are bound to emerge as reliable and innovative solutions to fortify the protection of digital assets. Embracing these advanced wallets can empower crypto businesses to manage their crypto holdings with confidence, minimizing risks and diversifying asset management strategies.