Circle has taken a big step by introducing a beta version of a new wallet service that uses a fancy technique called multiparty computation (MPC).
This clever wallet option is designed for folks who are into decentralized finance apps, Web3 video games, online shops using blockchain, and other cool things. Basically, it lets these creators make customized wallets for their users. At first, it’s going to work with Ethereum, Avalanche, and Polygon blockchains. The way it works is by chopping up a user’s secret key into a bunch of pieces and spreading them out all over a network.
This wallet idea is really popular with Web3 developers. They can access it through a thing called an API, which makes it feel like the apps we’re used to from Web2. Some people like that better.
What’s neat is that developers get to pick how secure and in control they want their wallet to be. For example, they might choose to do some of the work themselves to make sure they’re not relying too much on Circle. Or they can take it easy and just use Circle’s stuff.
These developers also get to decide if users need to help out with signing transactions. That means if someone loses their key, there’s a way to get it back. Or they can go for a different approach where users have to sign every single transaction.
Jeremy Allaire, the big boss at Circle, says this new wallet thing is super important for getting more people to use USDC, which is a kind of digital money.
But there’s been a bit of drama with MPC wallets before. Like, not too long ago, the famous Multichain MPC bridge got hacked and investors lost a ton of money. Turns out all the secret bits were kept on some cloud computer owned by the CEO.
Circle says their new wallet service is different. They’ve made it all on their own without using other companies’ stuff. So, no more cloud storage worries. And if some developers or companies want to take charge of their own wallet bits, they’re totally allowed. Unlike Multichain, which didn’t let anyone else run things.
So, in a nutshell, Circle is rolling out this cool new wallet thing that splits keys, spreads them around, and gives developers a bunch of choices to make things safe and easy for their users. And they promise it’s way better than that other MPC wallet mess.