By its very nature as an advanced form of technology, cryptocurrency is progressing and evolving each and every day. All these developments are fascinating, but some are more impactful than others and the progress of an idea known as the MPC cryptocurrency wallet is one such idea which is disrupting the cryptocurrency landscape and pushing forward the progress of the industry. To understand why the MPC wallet is important for cryptocurrency, you first need to understand how ‘traditional’ cryptocurrency wallets have worked.
Cryptocurrency, just like any other currency, needs to be kept safe in a wallet – just like cash. Cryptocurrency wallets allow users to store and retrieve their digital assets, requiring password access to get into their funds. Users can either choose to keep their cryptocurrency wallet online or it is possible to buy physical devices which run the wallet from an app.
When you want to make a transaction, you have to direct the recipient of your funds to a specific cryptographic address from your wallet – which, although it sounds complicated, is as simple as scanning a QR code.
The way that these wallets work is that rather than holding your cash invisibly or somewhere separate, the code simply marks the location of your currency in the public ledger and allows you to access it – since cryptocurrency is founded on decentralised ideals, it doesn’t move into a private bank account or anything like that when it is acquired. However, as the technology has developed it has been open to hackers and malicious actors due to its nature of being based on a public ledger. Luckily as the technology develops ever more secure ways of storing and accessing your cryptocurrency funds are becoming available. But more secure options have thus far sacrificed user experience, making cryptocurrency clunky to work with and inaccessible.
One type of cryptocurrency wallet fighting against that is the MPC or multi party computational wallet., which will be highly secure without sacrificing the user experience – a perfect middle ground.
Why is user experience so important?
It doesn’t matter how fantastic a product or service is if it’s not usable – unpleasant or complicated user experiences confuse or irritate the customer and make them turn away from the products. Think of it with something completely unrelated – say fast food. You’ve tried the burger before and you know it’s absolutely fantastic, but instead of being able to press a couple of buttons on a touch screen ordering station, you have to stand in three different queues, fill out a form, repeat your order three times for security and then walk out of the restaurant via a maze. It wouldn’t matter how good the food was – that restaurant would not take off, and would probably only have about three regular customers who were really committed.
The same is true of anything. Cryptocurrency is a relatively complex concept, but most people are willing to learn something a bit difficult when there’s something in it for them and plenty of people want to understand and profit from cryptocurrency – but if you throw in a clunky user experience that makes the new user feel like they aren’t getting anywhere, then the concept isn’t going to take off.
Up until the advent of the MP wallet, accessing a cryptocurrency wallet required methods which lack versatility and scalability, making them unpleasant for the individual user and impractical and unrealistic for businesses who may want to scale their accounts in the future.
How Does MPC Work?
The MPC in MPC wallet stands for Multi-Party Computational, and these wallets work by multiple computers completing calculations based on their own, unique fragments of data from a much larger data set, and as a collective they produce the intended outcome of accessing the allet without any individual computer knowing the entire ‘anwer’ or key. This is highly secure as it means no one computer is ever responsible for accessing an entire cryptocurrency wallet, and for this reason mpc crypto is some of the most secure out there.
The theory behind this technology has been around four over forty years, but it has only made a real appearance in the cryptocurrency arena more recently as the technology developed and companies began to take notice of its superior security capabilities over basic blockchain hexadecimal wallets.
So there you have it – the mysterious MPC wallet explained from the beginning. The original cryptocurrency wallets combined a lower level of security due to being limited to one computer with a poor user experience due to their lack of versatility and inability to scale. MPC wallets provide a high level of security, and they are highly scalable as a digital asset wallet grows. This technology will only become more commonplace as the industry of cryptocurrency develops over the next few years.