- Summary:
- OKX Wallet users will no longer need to write down seed phrase as three different and independent entities will verify user credentials.
The world’s second-largest cryptocurrency exchange by trading volume, OKX, has upgraded its OKX Wallet to use cutting-edge multi-party computation (MPC) technology, making it the first Web3 wallet to do so. A company statement says that MPC will greatly increase OKX Wallet’s security by making it more difficult for malicious people to access a user’s private key by dividing it into three parts.
MPC technology and why OKX Wallet is now more secure
Keys and seed phrases are no longer necessary with MPC because the user’s private key is split into three halves. Splitting the key means that no one person or entity has access to the full key. Consequently, this results in better wallet security and also minimizes the likelihood of key theft.
Also, the wallet upgrade comes with a whole new asset recovery capability that’s never been seen before: the independent “Emergency Escape.” Users can regain access to their assets without needing OKX’s assistance, making this a unique feature in the Web3 space. When this option is activated, users will be prompted to enter access credentials for either their device, a cloud backup, or their OKX account in order to regain access in an emergency.
By dividing a user’s private key into three parts, the technology greatly enhances security. Furthermore, it removes a single point of failure—the requirement for traditionally written down keys and seed phrases. According to OKX, the OKX Wallet makes it much easier for users to secure their funds and confidently participate in the emerging Web3 economy by incorporating MPC technology.
Securely holding and managing digital assets, trading, trading in non-fungible tokens (NFTs), and access to decentralised finance (DeFi) protocols are just some of the capabilities offered by OKX Wallet. The MPC upgrade is great news for the exchange’s 20 million+ users because it expands the functionality of the OKX Wallet.