Forget “this is not your key, this is not your coin”. There is a safer way to store your cryptocurrencies
Since the Mt. Gox hack of more than $600 million in Bitcoin in 2014, the crypto community has embraced the doctrine of “not your keys, not your coins.”
“We are not your keys, not your coins” has since become the gold standard for cryptographic security: take control of your private keys, and use them to securely store your 12-year phrase seed There is no doubt that centralized exchanges play an important role , can be used for liquidity, trading, lending, and trading, but most smart money should be stored off-chain, in a non-custodial and protected wallet solution with private keys.
This golden rule has not been challenged for a long time. In recent years, innovative cryptocurrency solutions have challenged this “private key” assumption and moved beyond outdated slogans by balancing the “safety versus security” trade-off. Simple Contrast Control”.
The private key is not the (only) vulnerability: neither are you!
Any password, including private keys, represents a security hole, and no system is completely immune to attacks and mistakes. While the nature of these attacks and errors may vary, they have one thing in common: human error that coders and users inevitably make.
In the world of cryptocurrencies, there is a dangerous rhetoric that hides harsh realities. “Hardware wallets are the ultimate security option” or “use two-factor authentication”. While they all have some truth, they also have their limitations. Even if you follow all of the above carefully, you risk losing all your funds. If you share or lose your private key, lose your mnemonic phrase, or get hacked during the two-factor authentication process on an exchange, you could lose all your funds forever.
Unfortunately, we make a lot of bad decisions that affect security. How many people write down their 24-word seed phrase on a piece of paper to keep it “in a safe place”? Perhaps this is the worst piece of advice you can give to someone who is not properly aware of the risks: the ink could be wiped off, the handwriting could be incomprehensible later, the paper could be lost, burnt, forgotten, it could be stolen or it could fall into the hands of others.
At the same time, the secure storage of private keys is a significant barrier to mass adoption around the world. It’s scary. How can we expect your parents to safely store their mnemonics when many of them use the word “password” to protect their most important online assets?
Securing Encryption with MPC: A Hybrid Solution Paving the Way for Mass Encryption Adoption
Previously, “Security vs. Simple Contrast Control of Cryptocurrency Storage” was dominated by centralized custodial exchanges on the one hand and decentralized non-custodial solutions on the other. But not anymore: news has reached the cryptocurrency space known as Multi-Party Computation (MPC) and Threshold Signature Scheme (TSS), offering an innovative hybrid solution.
The future of cryptocurrencies should inherently protect users and associated systems from their own mistakes. MPC is the first in the cryptocurrency industry to employ a hybrid solution that makes cryptocurrency wallets simpler and more accessible, while allowing users to maintain complete and secure control over their assets. Arguably the most successful approach to “safety and security”. Simple Contrast Control”.
The technology is not theoretical; it is open source, tested, and currently used by hundreds of thousands or even millions of users. Cryptocurrency wallets like ZenGo utilize this type of encryption so users never have to remember or store 12-24 mnemonic that could be lost, stolen or leaked: because there is no such thing as a mnemonic that can be lost, stolen or stolen. lost.
With MPC technology, the traditional private key is replaced by two independently created secret mathematical shares. One of the shares is stored on the user’s mobile device, while the other is securely stored on the ZenGo server, making it useless for hackers if hacked. The security of user cryptocurrencies is always guaranteed, and even if one of the shared resources goes down, there is no single point of failure.
Technology is becoming more popular, and some companies are advocating for its adoption. Discover the space and try it out for yourself – in order to foster true global adoption, these types of innovative solutions are vital and inevitaable, and will help users strike a better balance between security, simplicity and control.