Blockdaemon Blog

MPC Wallet: Support New and Niche Protocols That Users Require

Sep 6, 2024

By:

Frank

Wiener

Exchanges and Custodians face the requirement to support mainstream coins, new tokens, and niche protocols. Wallets often struggle to keep up with token trends, especially when supporting niche or out-of-favor tokens, which can delay upgrades to more efficient solutions. Fortunately, you can now take control of your wallet priorities more easily than ever before.

Take Control of Your Wallet Roadmap Priorities

Subscribing to a hosted wallet service or getting a self-hosted wallet is always the easiest option if it meets your needs and roadmap priorities. However, your priorities may differ from the vendor's. At this point, consider building your own digital asset wallet.

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An example is Indodax, a leading exchange and crypto custodian in Indonesia. Indodax was using multisig to provide multiparty approval controls for some of their mission critical wallet accounts. They wanted to upgrade to MPC for uniform policy enforcement and to avoid the costs and complexities of multisig. They struggled to find a wallet that provided complete control over their infrastructure while supporting mainstream, legacy, and new tokens. So they built their own. Watch the Indodax webinar to learn about their experience building their own exchange wallet.

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Building Your Own Wallet Is Easier Than Ever

Indodax was well-prepared to build their own MPC wallet, having experience with other exchange infrastructure systems. However, not every institution has the technical and security expertise to research, source, and integrate the necessary components for building a wallet.

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MPC SDKs Provide Proven and Secure Key Management Building Blocks

Multi-Party Computation (MPC) has become the preferred digital asset key management technology due to its protocol-agnostic approach and multiparty control. Multisig runs on-chain, requiring protocol-specific compatibility, while MPC runs off-chain, making it compatible with nearly all digital assets. By eliminating protocol barriers, MPC allows wallet developers to easily support new, mainstream, and legacy tokens.

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Blockdaemon has licensed MPC key management and protection technology to wallet developers since 2018, when it powered the world’s first institutional MPC digital asset wallet. Leading exchanges, banks, custodians, and wallet as a service providers have vetted, tested, and integrated our Builder Vault MPC technology. Our refined SDK and documentation give developers the resources they need to build wallets from scratch.

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Blockchain APIs Provide the Connectivity and Services That Wallets Require

Blockdaemon also licenses blockchain-related APIs like Wallet Transact and Staking API to institutions needing efficient, proven blockchain connectivity for transaction construction, staking, and broadcasting. These APIs and Builder Vault MPC SDK provide the building blocks to develop any wallet quickly.

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Automated Cloud Deployment Makes Self-Hosting Easier Than Ever

Blockdaemon APIs like Wallet Transact and Staking API are fully hosted. The MPC key management infrastructure is designed for self-hosting, giving institutions full control over key generation, storage and use. However, not every organization has the expertise to operate multiple independent MPC nodes with separate admins and 24/7 availability.

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Blockdaemon partnered with AWS and Azure to provide automated deployment services for hosting Builder Vault infrastructure in secure cloud environments. This creates a secure, highly available hosting environment with minimal technical burden on the institution.

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