Decentralized MPC — The Future Infrastructure for Crypto Wallets
1. The terms
1.1. What is MPC?
Multi-Party Computation, often abbreviated as MPC, is a cryptographic protocol that enables multiple parties to jointly compute a function over their inputs while keeping those inputs private. In simpler terms, it allows different entities to collaborate on computing a result without revealing their individual data.
Source: https://wirexapp.com/blog/post/multi-party-computation-mpc-explained-0856
1.2. What is TSS?
Threshold Signature Scheme (TSS) is a cryptographic primitive for distributed key generation and signing. TSS is a sub-field of MPC.
Threshold signatures require a subset of parties authorised to produce signatures on behalf of the group. The message is only considered signed if a threshold (t out of n, t = threshold of signers, n = number of total signers) of signers sign off on the message.
1.3. What is decentralized MPC?
In the first generation MPC protocols, for example in a 2 of 3 scheme, there are 3 key shares generated and kept by 3 parties, normally the user, the vender and the backup (managed by the user). Any 2 out of the 3 key shares can work together to complete transaction signing. It is much safer, also it mitigates the risk of single point of failure, compared to single private keys where you lose the key you lose everything. Somehow the user needs to put trust in a third party, also managing key shares is still a burden and risk for the user.
In the next generation MPC protocols, instead of a fixed number of parties managing the key shares, there would be a group of nodes running and forming a network, the key shares would be generated and managed among the nodes. Signing can be performed only when the access conditions are met and agreed by a certain percentage (as a threshold) of nodes.
Besides that, if the network is permissionless and open source, it would become a trustless and open infrastructure for people to build applications on, including crypto wallets.
2. Decentralized MPC protocols
2.1. Lit Protocol
(2024–02–02)
Mainnet Beta launched as per https://developer.litprotocol.com/v3/network/migration-guide/
2.2. dWallet
(2024–03–05)
dWallet (formerly known as Odsy Network) works differently to the other decentralized MPC protocols, where only 1 share out of 2 is operated with MPC through a permissionless network of nodes, and the other share is held by the users. So that it is noncollusive meaning it is impossible that the nodes can sign without the user and collude and steal the assets.(2024–02–24)
Testnet launched as per https://twitter.com/omersadika/status/1760736045233230320
2.3. Silence Labs
(2024–02–27)
Silent Shard snap, a MetaMask snap enabling 2FA alike security with MPC.(2024–01–03)
As per the meeting with Jay, the CEO, they have released a standalone SDK library for third parties to build their own MPC solutions.
2.4. Entropy.xyz
(2023–12–29)
They seem just released a library, not a decentralized MPC network yet, but they got backed by a16z and Coinbase venture. Dynamic.xyz also got backed by a16z.
2.5. Internet Computer Protocol (ICP)
(2024–01–09)
- Check out “threshold ECDSA” on https://github.com/dfinity/oisy-wallet
- Some questions and answers on GitHub https://github.com/dfinity/oisy-wallet/issues/587
- The Oisy Wallet built on ICP
2.6. ARPA Network
(2024–01–23)
It supports EVM chains only.
2.7. Nillion
(2024–02–26)
Some questions are discussed on GitHub, good community support. Exploration is going on…
https://github.com/orgs/nillion-oss/discussions/2
2.8. Passport Protocol by 0xPass
(2024–06–07)
J Labs has been working on a next generation crypto wallet POC on Passport Protocol, with the 0xPass team, since 2024–03.
We have been working together with as well as getting help from the 0xPass team along the way. The overall dev experience has been awesome, they’ve been listening to our demands and feedback carefully, and getting back to us with solutions and help responsively. We feel promising building our wallet with Passport.
(2024–03–09)
By talking to the founder Krish at 0xPass, its architecture, implementation and vision seem to be fine.
Currently supports EVM only, would support BTC and other chains in the future.Some questions are discussed on GitHub
https://github.com/0xpass/passport-demo/issues/2The demo
https://demo.0xpass.io/
2.9. ContinuumDAO
(2024–07–01)
The First Decentralized MPC Network to serve as a public good. Governance of the network is managed through on-chain voting by ContinuumDAO
3. References
3.1. Threshold Signature Schemes in blockchain: an introduction
(2024–01–23)
- Threshold Signatures (TSS) vs. Multi-sig
- TSS vs. Shamir secret sharing scheme
- TSS — Current implementations
3.2. Some other terms used for decentralized MPC
- permissionless threshold signatures (ARPA Network)
- decentralized threshold signatures (Internet Computer Protocol)
- decentralized key management and access control (Lit Protocol)
