HyperBC Shares How MPC Technology Solves Pain Points in Asset Custody
In a recent panel discussion at Expedition Trek held in the Museum of Dubai, Joe Zhou, Head of Strategy, Product & Business Advisor at HyperBC, shed light on the challenges and opportunities of navigating the Web3 landscape, mainly talked about how MPC Technology solves the pain points in enterprise-level asset custody. With over a decade of experience in the blockchain industry and a diverse background in top-tier technology companies, Joe Zhou brought valuable insights to the forefront.
Addressing Current Challenges in Asset Custody
During the panel titled “Navigating the Web3 Landscape in UAE: Insights on Investments, Funding, Licensing and Beyond”, Joe Zhou highlighted the common difficulties companies face when focusing on the security of digital assets in the current market.
Pain Points
Single Point of Failure
Difficulty safeguarding private keys leads to customer asset loss and potential damage to the institutional brand reputation.
Internal Compromise
It points out the disconnection between approval processes and execution and possible fraudulent transfers by operational staff.
External Hacking
Security vs. user-friendliness is a challenge; cold/hot wallets have their advantages/disadvantages.
Security and User Experience
It’s hard to balance cold wallet-level security with hot wallet-level user-friendliness.
Solutions
Joe proposed a secure MPC(Multi-Party Computation) based TSS signature solution to mitigate these risks. Tss stands for the threshold signature scheme. Instead of applying a single private key, HyperBC’s unique MPC solution breaks it into several key shares. For example, users send the cryptocurrencies from the address by activating three key shares from different trust parties simultaneously to sign together. During the process, the private key of that address never appears, nor do any trusted parties know the complete private keys. With this feature, HyperBC helps to solve the pain points to make the asset custody secure.
Recovery Mechanism for Stolen or Lost Private Keys
Stolen or lost private keys can be recovered and will not lead to losing customer assets.
Prevention of Internal Misconduct
Transfer transactions are automatically generated through the approval flow before signing, using mechanisms to avoid internal misconduct.
T/N Signature
A co-signature is required to transfer wallet assets, ensuring that even in the hacker attack, no loss of assets occurs.
Key Re-sharing
periodically change private key shards to increase the hacking difficulties
Approval and Execution Automation
Balancing the security of cold wallets with the user-friendliness of hot wallets ensures a combination of security and a smooth user experience.
Looking Towards the Future
Joe Zhou also discussed future prospects for HyperBC, emphasizing the integration of compliance with technological advancements. He explored the possibility of placing private key shards in compliant government agencies. He discussed the potential for HyperBC’s products to serve government agencies while leveraging the advantages of MPC technology under full compliance.
Unique Advantages of HyperBC
When asked about HyperBC’s unique advantages compared to competitors, Joe Zhou highlighted the company’s seven years of experience in the Blockchain industry. Powered by HyperLab, it has a robust ecosystem of wallet services, asset management solutions, and fraud prevention products.
He also emphasized a rich ecosystem ranging from Gateway APIs-based WaaS solutions to a hardware-based solution such as ATM and POS terminals. While expanding the product to the incoming mass adoption, HyperBC cooperates with banks and payment channels to provide credit card solutions and support Visa, Master, and UnionPay.
Product Roadmap
Joe elaborated on the challenges faced by MPC, noting its high level of security, but acknowledged its shortcomings in terms of user experience. However, he expressed optimism about overcoming these obstacles through HyperBC’s innovative research efforts in the HyperLab. Joe revealed exciting news about the upcoming launch of an MPC-based asset management solution, dubbed the warm wallet, designed to prioritize user experience while maintaining robust security measures.
He highlighted the integration of advanced technologies such as Key Hardening, Sharding, Recovering, and TSS GSX/TEE into this solution, ensuring a seamless balance between security and usability. Additionally, Joe emphasized the flexibility of deployment options offered by HyperBC’s MPC turn-key solution, which fits various client needs, including self-hosting, co-custody, and full-custody setups.
He underscored the ease of integration with HyperBC’s existing ecosystem, including the hot API wallet gateway and cold air gap hardware wallet HyperMate, providing clients with a comprehensive and cohesive solution. The latest version of the product is estimated to be launched in April.
About HyperBC
HyperBC stands as a market leader in digital asset custody and payment solutions. Catering to businesses seeking a secure and efficient transition to Web3 transformation. Ensuring the security of assets and we are committed to the mission of “ fostering financial freedom.” In line with this objective, we provide asset owners with a complete range of services, encompassing asset custody, merchant payments, clearing and other financial services.
