๐ MPC Wallets: How Keyless Self-Custody Is Changing Crypto Wallet Security
MPC (multi-party computation) wallets are emerging as crypto's fix for the seed-phrase problem, splitting signing authority across key shares instead of one point of failure.
โข The stakes: a Coldcard firmware flaw let attackers regenerate seed phrases, draining up to $130M from self-custody wallets.
โข Binance Wallet, built MPC-first with a 2-of-3 signing design, now commands 75% of wallet trading volume โ over $13B in daily volume.
โข Context: spot DEX volumes are averaging over $120B, with the DEX-to-CEX ratio climbing to 33% in August.
The Block's take: MPC won't stop phishing or malicious approvals, but it removes the single-key catastrophic-loss risk that's kept mainstream users away from self-custody.
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