How are Private Keys Stored in Crypto Wallets
Updated: Jul 19
Private keys are a crucial component of cryptocurrency ownership, and their security is of utmost importance. That’s why the MPC, Multi-Party Computation, is game-changing in 2023. This technology involves breaking up the private key into several shares, which are then distributed among different trusted parties. This ensures that no single party has access to the complete private key, making it more secure. Additionally, the shares are encrypted using a secure algorithm, so it’s impossible for hackers to access them as they have to attack multiple parties at the same time in order to breach the security wall.
Fascinating right? Fortunately, Nativ wallet, using CYBAVO’s MPC, also implements this unique approach to store private keys.
“CYBAVO”, A Service provider of MPC Technology
CYBAVO is a reliable provider of MPC and blockchain solutions, offering an all-in-one solution for blockchain management with on-premise key storage and MPC technology to ensure full protection of private keys. As a subsidiary of Circle, CYBAVO's innovative solutions provide a seamless experience for clients without compromising security and speed.
Nativ wallet utilizes CYBAVO's world-class security, combined with a user-friendly interface, to provide the best of both worlds—an easy and secure wallet for users of every generation you might not find somewhere else in South East Asia.
Non-MPCand Hardware Wallet: The drawbacks
Some might ask “Why is it so important to have MPC these days while we have other options that are more secure?” Well, there is the fact that storing cryptocurrency on non-MPC custodial platforms and hardware wallets can be risky due to potential vulnerabilities such as phishing, malware, supply chain attacks, and hardware vulnerabilities. Furthermore, although cold wallets offer increased security, they sacrifice convenience and can still be breached if users make mistakes. On the other hand, MPC-based solutions offer a new approach to securing digital assets, distributing trust among multiple parties and making it more difficult for attackers to compromise security.
As previously mentioned, Nativ's crypto wallet sees this pain point of choosing between security and accessibility. Therefore, it comes with a better alternative that offers a balance in a pendulum, combining top-tier MPC private key keeping technology and a well-designed UX/UI for a smooth user experience in the app.
Multi-Party Computation (MPC) in short
In essence, Multi-Party Computation (MPC) is a technology that allows multiple parties to work together without revealing data to others in the group. MPC works by merging private keys with the secret sharing principle called Threshold Signature Scheme (TSS), which enables secure data sharing and transactions without the need to provide real keys to a custodian (Nativ). With MPC, private keys are split and shared among different parties, eliminating a single point of failure. In fact, this technology can be used in various industries, especially cryptocurrency, to ensure the highest level of security for private keys.
Nativ is an MPC-based service provider that offers a secure key vault for private keys with support for over 4 main cryptocurrencies (BTC, ETH, USDC, USDT, ) and more to come!
How your Private key is actually stored
At Nativ, the private key of your crypto wallet will be encrypted, split, then kept between 3 main parties, in this case—you, Nativ wallet, 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 still safe and even more secure than ever despite the fact that your money is only protected by a 6-digit PIN—not the whole 24-seed phrase as in other traditional crypto wallets. Rest assured that no single party can access or manipulate it when your assets are in Nativ wallet
Interesting Wallet in The Market Several other wallets also use MPC to store private keys, and each of these wallets has its pros and cons. Nativ, on the other hand, offers a balance between security and accessibility, making it one of the best choices for crypto wallets in 2023. Here are some examples of MPC wallets in the market.
Nativ wallet is a digital asset platform that allows users to send, spend, save, and swap cryptocurrencies. It uses CYBAVO, a provider of MPC and blockchain solutions, to protect the private keys of users and enable cross-chain transactions.
-Uses MPC technology for added security of private keys
-No need to remember seed phrases but still secure by only 6-digit PIN
-Offers a simple and user-friendly interface for beginners and experts alike.
-Collaboration with high reputation company, Circle’s subsidiary, CYBAVO
-The App localized for SEA country
- Still in beta testing, thus open and very receptive to user feedback.
-Not support some of the features or functions that other wallets offers, such as delegator staking, lending, or borrowing.
-Currently limited currency supported
-Might not be compatible with some devices
Casa Wallet offers a range of security features such as multi-signature protection, two-factor authentication, and secure key management. It also provides a user-friendly interface and supports a variety of cryptocurrencies. One of the major advantages of Casa Wallet is its robust security, which makes it an ideal option for individuals and businesses seeking to safeguard their digital assets. However, the wallet may be relatively expensive compared to other options, and users must rely on Casa's servers for access to their funds, which could pose a potential risk.
ZenGo Wallet offers a user-friendly interface and a range of security features, including biometric authentication and client-side key generation. It supports multiple cryptocurrencies and allows users to purchase crypto directly from the app. One of the main advantages of ZenGo is its easy-to-use interface, which makes it an excellent option for beginners. Additionally, the wallet does not store users' private keys, which adds an extra layer of security. However, ZenGo may not offer the same level of advanced security features as other wallets, and some users may find its fees to be relatively high.
Fireblocks Wallet is a cryptocurrency wallet designed for institutions and professional traders, offering advanced security features such as multi-party computation and hardware security modules. It supports a wide range of cryptocurrencies and allows users to manage their assets across multiple exchanges and wallets. One of the main advantages of Fireblocks is its high level of security, which makes it a popular choice among institutional investors. However, the wallet may not be as user-friendly as other options, and it is primarily designed for advanced users. Additionally, Fireblocks charges relatively high fees, which could be a barrier for some users.
BitGo Wallet is a crypto wallet targeted towards businesses and large-scale clients, with cutting-edge security features like multi-signature protection and multi-party computation. It supports a range of cryptocurrencies and enables users to manage their funds across different wallets and exchanges. The key benefit of BitGo is its robust security, making it a go-to choice for institutional investors. Nonetheless, it may be less accessible than other wallets and requires some technical expertise. Additionally, the wallet's fees are relatively high, which might deter some users.
Casa Wallet: https://keys.casa/wallet/
ZenGo Wallet: https://zengo.com/
Fireblocks Wallet: https://www.fireblocks.com/wallet/
BitGo Wallet: https://www.bitgo.com/wallet/
Securing private keys is crucial when it comes to managing cryptocurrency transactions. At Nativ, the wallet takes this responsibility seriously by using a unique approach to store your private keys through MPC technology while still keeping high-level accessibility for end users. Again, this MPC ensures that your private keys are never exposed and remain safe and secure at all times.
But Nativ doesn't stop there. MPC technology also allows for fast and seamless transactions, making it easier for you to manage your cryptocurrency portfolio. Combined with the user-friendly interface, users can easily navigate through the app and make transactions with confidence.
Nativ sets itself apart with its unique approach to MPC technology and commitment to user-friendly design. Remember don't just take the word for it, but try it by yourself!
So why wait? Join the Nativ community today and experience secure, fast, and easy cryptocurrency transactions. Sign up now and start managing your portfolio with confidence today.