(#40) Web3 Wallets
Wallets are the fundamental building block or engine of the crypto economy. Anyone who wants to hold, trade, buy, or sell crypto assets needs a wallet as a non-negotiable.
Sometimes you have to create whats missing in your world yourself; until then, you’ll keep searching for something that exists only in your imagination and keep getting disappointed.
Web3 Wallets
Wallets are the fundamental building block or engine of the crypto economy. Anyone who wants to hold, trade, buy, or sell crypto assets needs a wallet as a non-negotiable.
Businesses operating in the crypto space today either supply their users with a wallet (Coinbase, Kraken, Crypto.com., MetaMask) or ask a user to Bring their own Wallet (BYOW) (Uniswap, OpenSea, Rarible).
This seesaw of control vs. ease is one on which businesses grapple to find equilibrium.
Blockdaemon’s wallet use of MPC (Multi-Party Computation) means that no single party has access to the complete private key, reducing the risk of theft or compromise and enabling the wallet to be reconstructed in the event that one party loses their keys.
What is MPC?
On Blockchain, the default way everything is built is by natively supporting a single key and a single approver. MPC looks to blockchain as if one party had one key.
There is no need to make specific configuration changes to policies, smart contracts, extra mining or gas fees that require transactions for each different protocolMPC Solves these problems:
- Key must be secure (single point of failure)
- Key must be accessible, recoverable
- Single point of control is unacceptable
- Universal multiparty approval
- 1 key = 1 sig = all protocolsMPC Security Example:
Let’s say the following systems run a key share: an AWS Cloud instance, a Google cloud instance, and a corporate enterprise private network node.
If these machines are operated in an environment that is physically secure and hosted in different environments under different administrators, In order to hack into the system, a bad actor would need to defeat all of the systems before the key ever changes.🐦 Tweets
(friendly reminder) despite whats you may see on Twitter. You know less than 1% of what’s going on in someone’s mind, let alone the combo of external combos they may have going on. Having good people around that actually know you is getting more rare these days.
I’ve been creating space to read a lot more this summer. I highly recommend it. There are some good reads in this thread.
The most successful people I know are those who are a phone call away from access.
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If you haven't had a chance to watch the Coinbase documentary yet, it's up on YouTube for free!
I love seeing Coinbase' progress and continued journey.
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me every night
