Enhancing Security in the Digital Landscape: The Power of MPC-TSS

September 18, 2023
3 min

In today’s digital landscape, security is of utmost importance. Cryptography plays a crucial role in securing sensitive information to protect us online, safeguarding our access to financial infrastructure like e-banking.

Enhancing Security through Distributing Signing Authority

For innovative developments to be effective, they have to meet security standards. Therefore, io.finnet built io.vault based on the MPC TSS technology. io.vault is a secure self custody product that helps organizations manage their digital assets. Being built on MPC TSS cryptography, the composition of io.vault eliminates the vulnerabilities associated with traditional private key management. A key element of this progress lies in the use of key pairs, which ensure secure ownership and transactions while mitigating risks related to compromised private keys. Let’s take a deeper look at the process!

Digital signatures are a key part of this — not only in digital finance but also in various other fields. In the digital assets space, they secure and verify transactions. Digital signatures are also used in traditional banking transactions, legal agreements, web browsing, e-Commerce, email verification, and software distribution, providing a secure method for confirming identity and maintaining information integrity. Whether in the world of digital finance or in broader online activities, digital signatures serve as a cornerstone for trust and security, fulfilling a vital function across diverse applications and industries.

One such digital signature technology that has gained significant attention is MPC-TSS (Multi-Party Computation with Threshold Signature Schemes). It revolutionizes security by distributing the signing authority of a digital signature among multiple participants.

In digital signature security, there are three main options to consider: single signature, multi-signature, and threshold signatures. Single signature is commonly used but provides the lowest level of security. Multi-signature offers increased security but may not be ideal as it requires individual signatures to be shared online, revealing the identities of the signers. On the other hand, threshold signatures provide the highest level of security without storing keys on-chain. To understand how crucial public-private key pairs are, consider that your “public address” is like your account number, displaying your assets. To make any asset transfers, you need a “private key” to approve the transaction. But if someone gets hold of your private key, they can control and misuse your assets. This vulnerability has caused losses for individuals and businesses alike.

With MPC-TSS, a group of participants collectively generates a single signature that represents their combined authorization. This collective approach ensures that no single participant holds the complete signing authority, further enhancing security and reducing the risk of unauthorized access.

Source io.finnet

Traditionally, cryptographic keys have been managed by a central authority, which poses a potential vulnerability. Attackers often target these centralized systems to compromise user assets. However, with MPC-TSS, the need for a central authority is eliminated. Instead, the signing authority is distributed among multiple participants, making it significantly harder for attackers to target and compromise user assets.

At io.finnet, we firmly believe that technology can level the playing field in finance, and as pioneers in MPC-TSS, we are dedicated to establishing an inclusive ecosystem and setting new standards to embrace the limitless potential of digital assets for finance and corporations.” says Gregory Pépin, CEO at io.finnet. Embracing this innovative solution will undoubtedly strengthen the security posture of organizations and protect user assets in an increasingly interconnected world.

io.finnet provides an enterprise blockchain solution to banks, enabling instant 24/7 settlement through the use of MPC-TSS and other technologies. This offers the flexibility of customizable signing parties, tailored to specific organizational needs. The use of MPC-TSS enhances security as no single participant has full signing authority, and it increases security and operational efficiency by eliminating the need to store public keys on-chain. In essence, MPC-TSS’s design ensures the highest level of security for digital transactions through distributed signing authority, decentralization, and increased privacy.

To learn more about how MPC-TSS technology can help secure your digital assets, visit iofinnet.com. io.finnet is a fintech software company that specializes in blockchain-based solutions for digital asset custody and instant settlement.