There are three main types of crypto wallets based on how users store their private keys. One type is a custodial wallet. Such wallets are easy to set up, simple, and convenient to use. They are usually offered by crypto exchanges to users for their convenience. Also, at the same time, while operating such wallets, you give up your financial freedom, because the private key is not in your hands. Wallet providers store private keys on their servers.

Another type of crypto wallet is a non-custodial wallet. On the one hand, they provide you with ultimate financial freedom. You may store assets, sell, and trade, etc. There are no restrictions or limitations set from the wallet provider’s side. On the other hand, the web3 environment is toxic and your crypto assets are the target for hackers and scammers. Also, the private key can be lost or misplaced, which will also disable access to the funds.

MPC technology is the gold standard in securing private keys

There is one more type of crypto wallet, a self-custodial. It provides you with full control over your digital assets and at the same time offers an unmatched level of security. Multi-party Computation (MPC) is the encryption technology that empowers you with convenient yet safe means to interact with web3. 

What is MPC?

MPC is a technology that enables the data exchange between parties in a trustless manner and helps to build privacy-preserving software. The MPC technology protects your private key by splitting it into two (or more) shards. 

Spatium stores one shard on your device (mobile phone) and the other one on the Spatium server.

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When you want to sign a transaction and complete one of the actions: send crypto, buy crypto, exchange crypto, etc. a phantom key is generated. The wallet’s private key is eliminated, that’s why such wallets don’t have a single point of failure. 

It’s worth mentioning that MPC is not easy to master. The technology represents multi-round distributed protocols with high-level cryptography. Inexperienced crypto development teams and lack of testing may cause MPC technology to be misused and prone to bugs. Moreover, in addition to signing crypto wallet transactions, MPC technology helps restore access to the wallet in case the device with the wallet installed is lost or stolen.

Spatium crypto wallet MPC implementation

Spatium Wallet has been applying MPC since 2017, which makes the Spatium team one of the most experienced in the world of MPC wallets. Also, as part of MPC technology, Spatium applies Threshold signatures (TSS) and Zero-knowledge proofs (Zk-proofs). 

These technologies make consumer-focused Spatium wallets bulletproof secure and protect users’ on-chain asset management systems.

Only you, as a user, can initiate wallet operations. Spatium has no access to your wallet account. Also, Spatium cannot set any limitations on your wallet activity. To send crypto, you start a process when the wallet secret and the server secret communicate. Applied together, they sign a transaction without revealing the secrets to each other.

Summing up

Spatium Wallet is one of the first crypto wallets to use MPC. This technology is ideal for providing a balance between on-chain private key management, the ability to recover the wallet app and wallet security. Our team is advocating for a safe web3 experience available to everyone. Spatium Bitcoin MPC wallet is easy to use and free to download. It’s available on Android and iOS devices.

In addition to convenience, it brings a competitive edge by offering feeless transactions.

Try Spatium Feeless Bitcoin Wallet and the feature allowing you to pay network fee in currency you send instead of native chain tokens (currently available for USDC on Ethereum. More chains and tokens will be added soon).

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Keep a close eye on Spatium Feeless Bitcoin wallet which is building DeFi on Bitcoin and actively working toward the introduction of feeless crypto transactions and cheapest ever peer-to-peer crypto swaps without escrow.

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