Fireblocks, specialist for security of digital assets, announced on May 13th the development of a new multi-party computing algorithm (MPC) to improve the transaction speed for the secure transfer of digital assets by 800%.
Also Custodian banks and providers of digital assets can access and use the new protocol free of charge. Fireblocks does not intend to apply for patents for the new technology.
Multiparty calculation explained
MPC is a form of cryptocurrency that allows multiple parts to calculate the output of a function, with inputs from each part being takenwhile individual entrances are kept private.
In transactions with digital assets, a private key can be divided into several parts and then re-created without the parts first having to be assembled on a single machine.
Essentially, the only compromise point is eliminated by converting private keys into liquid form by signing securely distributed transactions.
In addition, a threshold element tends to be used for the technology with multiple signatures, so that only a certain threshold is required for sections with private keys to sign a transaction.
Make MPC faster and safer
The new protocol called MPC-CMP is based on the current industry standard for MPC. It manages to increase transaction speed by 800% by reducing the number of rounds required to securely sign an MPC transaction from nine to one.
This is achieved by halving the number of interactive rounds to four, three of which can take place in a pre-processing phase. This leads to a non-interactive signature protocol.
The algorithm also includes security improvements, e.g. B. the automatic update of key releases per minute, Protection against advanced attackers and a universally configurable test that is immediately ready for use.
Make MPC more free
Fireblocks made the protocol available to any MPC administrator and provider of digital assets free of charge.
The company has stated that it will not register patents for the new technology.. They were also opened for peer review to ensure the strength and efficiency of the protocol before implementation. Michael Shaulov, CEO of Fireblocks, explained the reason for such a step:
“As financial institutions try to launch and operate digital asset services, we believe that MPC-based technology will be of paramount importance to deliver an experience comparable to the speed of traditional assets. We provide custodians and providers of MPC has released our new algorithm to drive innovation, drive adoption, and prepare digital assets for the broader institutional market. “
The Fireblocks platform offers institutional investors the ability to securely transfer digital assets between exchanges, wallets and counterparties. As Cointelegraph reported, it recently had a monthly transfer volume of more than $ 7 billion. This news was accompanied by expansion to meet demand in the Asia-Pacific region.