In 2008, the same year that Satoshi Nakamoto published the famous Bitcoin white paper, a group of cryptography researchers in Denmark implemented the first production deployment of a technique known as Multiparty Computation (MPC). It was not obvious at that time, but MPC would ultimately become the basis for Crypto Wallets 2.0, ushering in an era of increased security for institutional- and consumer-grade wallets, with native support for any digital asset.
Read MoreHD wallets are a feature of bitcoin and similar cryptocurrencies with the goal of providing improved privacy and usability. Compelling benefits can be achieved when using non-hardened key derivation. The problem is that if the private key corresponding to an xPub address is somehow leaked, then the private keys of *all* “siblings” and the parent can be exfiltrated. Multi-party computation offers a way to improve this state of affairs because a private key is never in one place (even when signing).
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