TL;DR: Zengo’s new Multiple Wallets feature exemplifies the outsized benefits of MPC (Multi-Party Computation) architecture over single-factor seed phrase wallets to provide the best blend of security and control available, as we’ve already demonstrated with Theft Protection and Legacy Transfer.
Introduction
At Zengo, we continually strive to enhance security and functionality for all users, from noob to HODLer, from pro Web3 user to businesses getting paid in crypto. We are excited to provide a technical perspective on our latest innovation: the Multiple Wallets feature. This new capability leverages Zengo’s Multi-Party Computation (MPC) infrastructure, enabling functionalities that traditional hardware wallets cannot match.
Here’s the real innovation:
Unlike seed-based wallets, multiple wallets are not just “labels” but rather separate entities that can enable different security policies and logic attached to each one.
As such, it sets the infrastructure for a series of advanced security and business features that only Zengo can uniquely offer because of our battle-tested MPC infrastructure, instead of technological alternatives like Account Abstraction (AA) or seed phrase systems.
A brief review: MPC foundations at Zengo
MPC (Multi-Party Computation) is a subfield of cryptography that allows multiple parties to jointly compute a function over their inputs while keeping those inputs private. This technique ensures that no single party can reconstruct an entire private key, removing the single point of failure associated with a traditional hardware or software wallet: The infamous seed phrase. In the context of Zengo’s architecture, our MPC infrastructure ensures two Secret Shares are independently-yet-simultaneously generated (like a distributed private key) in two locations: The user’s personal device, and the Zengo Remote Server. These shares collaboratively perform cryptographic operations without ever revealing the complete key. (Zengo holds the world’s largest open-source consumer MPC library; see here.)
The security of MPC lies in its ability to tolerate compromised parties without compromising the overall security of the key. This model significantly mitigates risks associated with single points of failure, such as key theft or loss, which are common vulnerabilities in traditional hardware wallets. To date and despite a $500,000 bounty, 0 Zengo wallets have been taken over or phished.
MPC beyond signing and wallet recovery
Zengo’s MPC infrastructure has already allowed the development of a series of advanced security and self-custodial features, contained within the framework of Zengo Pro.
The introduction of Multiple Wallets within a single Zengo account represents the next evolution of this technology: Today, any Zengo Pro customer can create up to 5 unique, isolated wallets within their Zengo account. While account recovery is still tied to their original Secret Shares, each wallet operates independently, utilizing the MPC framework to ensure that each wallet’s parts of a private key are distributed and managed securely. This design allows users to create and manage multiple wallets with different security settings and use cases, all underpinned by our robust MPC infrastructure.
Main advantages of MPC include:
- Enhanced Security: By distributing key shares, a Zengo wallet has no single point of attack can compromise the entire key.
- User-Defined Security Policies: Users can define specific security and business logic for each wallet, tailored to their needs and supported by Zengo’s remote servers.
- Advanced Self-Custody: Unlike hardware wallets that rely on a single key, our MPC-based approach provides superior security and flexibility.
Customization and future enhancements
Current Features
The current implementation of Multiple Wallets includes features such as customizable backgrounds and advanced security options like Theft Protection and Bitcoin Privacy Mode. (These features not only enhance user experience but also provide additional layers of security, ensuring that users maintain full control over their assets.)
Future Plans
Looking forward, our MPC infrastrucure allows us to build several advanced features we consistently get requests for, including:
- Business Accounts: Enhanced functionality for professional use, including multi-user access and advanced transaction controls.
- Shared Accounts: Collaborative management of digital assets, allowing multiple users to interact with a single wallet, securely.
- Advanced security policies: Risk based policies, similar to other modern non-crypto financial services, requiring elevated authorization based on anomalies in transaction parameters and user normal behavior (such as geography, time of day, day of week).
Conclusion
Zengo’s Multiple Wallets feature represents a significant advancement in crypto security, combining the flexibility of managing multiple wallets with the unparalleled security of MPC. This innovation not only addresses the limitations of traditional hardware wallets but also sets the stage for future enhancements that will further empower users with advanced cryptographic tools.
To learn more about the technical underpinnings of MPC and its application in cryptocurrency security, explore our detailed technical documentation and stay tuned for upcoming updates that will continue to push the boundaries of what’s possible in this space.
For more insights and updates, visit our blog, which includes a series of advanced articles published by our Zengo X Research Team.
