Custodial Convenience, Non-custodial Security - A Deep Dive of MPC Technology in nativ Wallet
Updated: Jul 14
Last week, we informed you about possible vulnerabilities that could happen if you choose to self-custody or deposit funds into a non-MPC wallet provider. Now, it’s time for a better alternative! At nativ, we provide you with MPC-enabled cutting-edge technology in private key keeping for you to ensure the security of your seed phrase together with the maximum accessibility nativ has to offer.
Want to learn more about MPC to get confident on our platform? Let’s deep dive today!
🎉Deep dive: Multi-Party Computation (MPC)
Multi-Party Computation (MPC) is a technology that enables multiple parties to work together without revealing data to others in the group. With MPC, you can safely and anonymously distribute data between parties, making it an ideal solution for secure data sharing and transactions. This means that your private key is never formed in one place, existing in a fully "liquid" form.
At its core, MPC works by merging private keys with the secret sharing principle. This allows multiple parties to hold parts of a single key, without any one party knowing which section of the key the others hold. This is also known as Threshold Signature Scheme (TSS), a subsection of privacy-focused computation that allows a key to be split and shared among different computers. By doing so, cryptocurrency holders can avoid the need to provide their real key to a custodian, thus eliminating a single point of failure.
For example, let's say we want to share the number A with a value of 42 between two computers. To do so, we divide A into two parts, A1 and A2. A1 has a value of 50, and A2 is -8. A1 goes to one computer, and A2 goes to the other. When we add A1 and A2, we get 42. This way, neither computer knows the actual value of A, but together they have the information they need.
🎉Examples of MPC in Practice
The same mechanism applies when dealing with private keys. With MPC, the blockchain transaction passes through all the parties (3 parties in this case—you, nativ, and CYBAVO cloud), with each adding their section of the key without revealing or accessing the other parts of the key. This ensures that the private key is safe and secure and that no single party can access or manipulate it.
Let’s take a look at another example to see how this works in practice. Now we will compute average salary of three employees - John, Grace, and Jackie to compare if they’re being paid fairly. However, they work for different companies, so they can’t just share their salary information with each other. Thanks to MPC, everyone will still be able to compute the average salary without revealing their current salary at all. How is that possible? Let’s have a look:
By using MPC, each employee’s salary is divided and masked using a set of random numbers. For example, John’s $60,000 salary could be represented as $10,000, $100,000, and $-50,000. Grace’s $70,000 salary might be represented as -$40,000, $120,000, and -$10,000. And Jackie’s $80,000 salary could be divided into $180,000, -$30,000, and -$70,000. Note that there are infinite ways to generate three numbers that add up to the same value (One’s salary).
Each participant then shares two of their masked values with the others. When all the masked values are added up, they produce a meaningless number. However, if each gets the final three values and divides them by three, it gives a similar average.
🎉Masking real salary
$10,000, $100,000, and $-50,000. = 60k
$-40,000, $120,000, and $-10,000 =70k
$180,000, $-30,000, and $-70,000. =80k
🎉After sharing masked value (Each person share two masked values with the others and add it up)
$10,000, $120,000 $-70,000 = 60,000
$-40,000, $100,000, $-30,000 = 30,000
$180,000, $-50,000, $-10,000 = 120,000
🎉Add up the final three number and divides them by three, it gives a similar average (70K) without needing to tell the truth to the others.
👏60,000 + 30,000 +120,000 = 210,000
👏210,000/3 = 70k average salary
🎉Secure Your Keys with nativ-CYBAVO MPC
At Nativ, we understand the importance of security when it comes to your cryptocurrency. That's why we choose MPC technology to be our fortress, your fortress, that offers the most secure key vault for your private keys.
Multi-party computation technology eliminates single points of failure in secure key vaults, ensuring the highest level of security for your private keys. Together with Authentication & Authorization App, you can rest assured that your logins to your nativ account are secure as if you are using a non-custodial wallet.
With support for over 4 main cryptocurrencies, including Bitcoin, Ethereum, USDT, and USDC (For now), as well as our APY-guaranteed “Earn” services, you can trust that your assets are safe, secure, and still “mature” within nativ app.
Join the growing number of crypto enthusiasts who are turning to MPC-based service providers like nativ today, and witness how easy and secure it is by yourself! Download now at https://www.nativpay.com/