This content originally appeared on HackerNoon and was authored by Vladimir Gorbunov
\ Managing crypto finances presents a continuous struggle in finding the right balance between security and convenience. There are various options available, such as hot and cold wallets, as well as centralized and decentralized storage systems. While each option offers its own advantages, they also pose risks, including the possibility of forgetting seed phrases, misplacing wallets, or unauthorized access to funds. How can wallet providers ensure strong security measures without compromising user-friendliness? Hybrid SMPC technology is the answer.
Constant challenge in managing crypto finances
Centralized storage has always been susceptible to vulnerabilities. When you deposit your money in a bank or a centralized exchange (CEX), you depend on their stability and security. In the event of their collapse, your funds could disappear along with them. FTX served as a prominent example, but other centralized platforms also faced bankruptcy in 2022, resulting in an estimated loss of 100 billion dollars.
\ Many people couldn't access their assets, showing the need for decentralized storage that gives you control. But decentralized solutions have challenges too, like losing access due to forgotten seed phrases or misplaced hardware wallets. Without a central authority, there's no help to recover assets if you make a mistake or get hacked.
\ These issues have contributed to an increasing demand for a hybrid approach that combines the benefits of centralized and decentralized storage while addressing their respective weaknesses. The cryptocurrency sector has long been in search of a solution that can offer strong security measures while still maintaining the ease and availability of centralized services.
New paradigm in asset storage
With decades of bankruptcy and a history of ‘grey’ practices with banks, there is a huge lack of trust in the modern world when it comes to storing money.
\ Essentially, the world needs a solution for holding funds in a:
\
- Decentralized manner
- With complete ownership and autonomy of their funds
- Secure and private
- Reliable and accessible 24/7
\ A new system needed should combine hybrid SMPC with secure agents to enhance security measures. It should allow users to enjoy the benefits of decentralized storage while still having centralized access to funds for making payments. This means that users can easily transfer funds to their bank cards or bank accounts.
\ One of the unique features of a hybrid SMPC is its ability to offer special recovery options that are not available on centralized platforms. Users can set up a backup wallet, where funds can be redirected in case something happens to them. For example, they can specify several wallets belonging to their relatives, and if anything happens, the funds will be transferred to one of these specified wallets. Tringlr also provides a high level of customization, allowing users to set limits on the amount of money that can be withdrawn or transferred.
Hybrid SMPC key pool
The most important component within the Tringlr infrastructure is the so-called key pool. The centralized part also has a very important function in ensuring the security of the decentralized part because it has its own key. Let’s explain this further.
There are 3 keys stored in total.
\
- Owner of the wallet
- Centralized part of the platform
- Secure agent (third party that can also authorize transactions)
\ Tringlr's innovative design revolutionizes the concept of security by incorporating a unique security loop. This loop ensures that even if the decentralized part is hacked, there is no risk of losing money. The confirmation of the centralized key and the involvement of the secure agent are required for any transaction. Additionally, any attempt by a centralized service to block fund withdrawals due to violations is rendered impossible. The backup wallet insertion mechanism is virtually unhackable and can only be initiated within a three-month timeframe by the owner of the decentralized wallet and the secure agent responsible for this process.
\ Such decentralized architecture, combined with components of centralized aspects, will be the foundation for creating the most secure wallet for holding your crypto funds.
Account abstraction benefits
Tringlr incorporates account abstraction technology, allowing for seamless fund transfers between wallets, centralized exchange functionalities, and a range of essential features such as browser-based payments. The ultimate outcome is the development of a secure and robust wallet that facilitates transactions in both the Web3 and TradFi realms.
\ Simultaneously, users can still utilize their funds in the physical world as they normally would. Within the wallet, there is an option to transfer money to a centralized component, which enables funding of a bank card linked to the client's bank account. Users have the ability to set limits for these automated top-ups. Additionally, the centralized service will offer various other centralized products, including credit products, card products, and staking products, providing a comprehensive solution to bridge the gap between cryptocurrencies and the real world.
\ The result? A solution that transfers the power over money to the individual, in a way never done before. A solution that is completely secure in the decentralized component, while also being impossible to limit the ability to access money from the centralized part. \n
This content originally appeared on HackerNoon and was authored by Vladimir Gorbunov
Vladimir Gorbunov | Sciencx (2024-06-28T16:46:52+00:00) Hybrid SMPC Technology – the Cutting Edge in Crypto Wallet Security. Retrieved from https://www.scien.cx/2024/06/28/hybrid-smpc-technology-the-cutting-edge-in-crypto-wallet-security/
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