Spatium Blog

MPC WaaS is a relatively new concept in the world of crypto wallets which for good reason has become extremely popular. MPC stands for Multiparty Computation which is a cryptographic protocol from the 1980s. Originally, MPC aimed at providing advanced encryption to conceal the data and distribute computation across several parties when no one could know the other party’s data. 

MPC has been recently adopted by WaaS to provide a unique combination of security and usability when everyone regardless of their tech skills could hold digital assets and use them.  

MPC In Action

MPC encryption in cryptocurrency world could be compared to a musical piece. Notably is that each of the instruments (the minimum requested amount is two) has its role and the musicians playing them know their part only and don’t know anything about the partners’ note sheets. Each of the instruments contributes to the tune and the tune itself is the goal. 

Let’s discuss how we make music out of cryptographic techniques in Spatium, an MPC wallet provider. Our MPC cryptographic protocol enables the distributed way of signing transactions through several proven algorithms. Some of them are MPC extensions: TSS, ECDH, EDDS, ECDS, and others, as well as homomorphic encryption schemes and zero-knowledge proofs. Sounds like a heavy orchestra, but let’s check how this cryptographic ensemble works. 

Spatium MPC Protocol Model

Our MPC protocol enables users’ wallets stored on a combination of devices or servers when each party generates secrets independently. These secrets are the substitution of the private key, which is never really created and stored anywhere. 

The basic transaction signing model involves two secrets generated by two parties of the transaction (the user’s side and the service provider’s side) and one party - controlling the protocol - the guarantor (Spatium). 

The first secret is generated independently when the user installs the wallet app on their device and registers there. 

The second secret is generated independently on the server side operated by the business.

To sign a transaction or perform a backup of the account Spatium (guarantor) receives the first encrypted secret, and confirms its authenticity. Then it receives the second encrypted secret and confirms its authenticity. The guarantor cannot technically use these encrypted secrets but is only responsible for their integrity and securing the protocol’s performance. Bringing our musical metaphor, Spatium as the guarantor is the conductor of the orchestra, who gives a sign to which instrument should start and when it should finish and let the tune be played by other instruments. 

Taking into consideration that there is no actual generation of the private key, Spatium MPC-powered wallets provide enterprise-level security for digital assets stored and the transactions performed. To hack a wallet, one has to compromise each of the parties of the transaction signing process involved in the protocol which is technically impossible. 

Also, joint control over the access to the wallet is performed by the user and the service provider, having Spatium as a guarantor of all the processes is highly beneficial for everyone. Businesses can impose account management policies for additional security of users’ digital assets. These could be KYC and AML regulatory compliances, scoring practices, and other anti-fraud mechanisms. Notably, there is no need for businesses to comply with any custody regulations because no storage of the assets involved. Wallet custody is fully on the side of the user. 

Advantages of MPC Wallets

Decentralization

The fact that the secrets needed to generate the private key are distributed among different parties eliminates the risk of centralization. Moreover, the risk of compromising an account which could affect its availability and security is eliminated.

Data Privacy

MPC WaaS enhances users’ data security because no private information or other sensitive data is revealed to any of the parties involved in transaction signing. MPC allows for completely user-centric wallets when no one can access private data without the wallet’s owner’s consent.  

Accuracy

MPC crypto wallets are powerful to perform complex functions such as signing transactions and signature verification, public addresses generation, and others with high accuracy and no errors.   

No Single Point of Failure (SPOF)

Compared to other crypto wallets: hardware, multi-sig, and single key, MPC wallets have no SPOF. Users cannot lose the private key, it cannot be hacked. If the device storing one of the secrets gets lost or broken, it could be easily restored. Moreover, no phishing attack could hack the wallet because there is no private key to steal. MPC wallets don’t store the private key. It is split and distributed across multiple parties.  

Flexibility

MPC WaaS offers flexible digital assets management by enabling dynamic workflows and policies. Users or wallet service providers may set various parameters for transactions. This could be the frequency of transactions, the maximum limit for one-time transactions, destination addresses, etc. These parameters can be modified at any time either by the user or the business once the user’s consent is acquired. 

Scalability

Crypto wallets powered by MPC allow users to remove or add parties from the protocol while its functionality is intact. security levels could be adjusted, performance parameters can be altered according to the priorities. The parties are added to the protocol the higher the security level is. 

Compliance

If requested, the MPC protocol could comply with Know Your Customer (KYC) and Anti-Money Laundry (AML) requirements. MPC-powered wallets could comply with global standards and regulators through anonymous identity and funds source verification.  

User-friendliness

MPC wallets are very convenient compared to other crypto wallets. They simplify the confusing UX of traditional crypto wallets and substitute it with similar to web2 mobile app functionality. There are no key management and seed phrases, automatic public addresses generation, and network switching. 

Risks of MPC Wallet as a Service

Some risks indeed exist in MPC-powered crypto wallet development but Spatium knows exactly how to reduce them and make wallet building effortless and seamless. Being the pioneer in MPC wallet development, we have solid expertise in the field of cryptography and know exactly how to make MPC wallets engaging and efficient. 

High Gas Fee

Standard MPC protocol execution needs a lot of communication from multiple parties involved in the protocol operation. Thus, network latency and bandwidth usage are increased which means higher fees per transaction. Spatium is planning to decrease gas fees through the optimization of the transaction timing, when all MPC-related communication is off-chain.

Overall Complexity 

Cryptographic technologies used for MPC realization are disrupting and advanced. It sometimes takes months for developers to understand how they work and apply them accordingly. Quite often bugs as well as other vulnerabilities might happen which could compromise the overall security of the wallet. The good news is that Spatium has this covered. Our Wallet SDK together with Wallet Cloud and Wallet UI make up the best-in-class MPC non-custodial wallets with minimized efforts.

Not Interoperable or Open Source 

The lack of open source for MPC algorithms implementation leads to the inability to standardize the technology and make it compatible with other non-MPC wallets. Spatium acknowledges such a necessity and advocates for more interoperability in blockchain as it brings more benefits for users and service providers. That’s why we are working hard on making our Wallet SDK open-source and available for the blockchain community. Keep up with our latest news and don’t miss this big day. 

Use Cases of MPC Wallet as a Service

SMB Companies 

MPC is a convenient encryption protocol that enables the involvement of more than one party to approve the transaction. If there are organizations that have the requirement that several people or parties take custody of the account and manage the assets together, then an MPC wallet is an ideal solution. 

Investment Organizations

One of the characteristics of MPC wallets is that one wallet can be used by several people at the same time. In the case of investment organizations, it’s exceptionally useful if a group of investors would like to manage the assets together. Such a wallet provides them an opportunity to make a common decision and invest funds only when everyone from the group gives their consent. 

Custodial Service Providers and Exchanges

MPC encryption could also be used in custodial wallet development to increase the level of wallet protection. Instead of users, the secrets used to generate the private key can be shared across the company servers, protecting the wallet’s private key. 

Joint Custody

MPC wallets could be ideal solutions for individuals who want to share the custody of their accounts with family members, financial advisors, or any other trusted parties. No single party will be able to access the funds on their own without the consent of other account holders.

Voting Systems

MPC Wallet as a Service could bring transparency and more security to online voting. Each voter holds a secret to generate a private key and the voting is successful when all the requirements are met and the secrets are activated. Such votings are extremely difficult to tamper which means that their results are trustworthy and accurate. 

Games and Collectibles

MPC wallets could be used to store and manage gaming achievements. Game developers and collectors could share custody over users’ wallets to prevent fraud and theft. Once the security of users’ assets is protected, game developers can concentrate on the game’s innovative experiences. 

Summing Up

MPC Wallet as a Service plays a crucial role in the modern web3 world. The MPC protocol implementation provides flexibility, scalability, and enhanced security. Users have better control over their digital assets. The fact that multiple parties participate in the management of digital assets brings better management efficiency and enhanced risk mitigation. 

Spatium is an innovator in MPC-powered wallet development that found a way to simplify MPC wallet creation. Check our products: Wallet SDK and Wallet Cloud which facilitate the development tenfold. 

We are excited to get to know how we can be helpful to you and your business. Drop us a line and we will get back to you as soon as possible.

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Discover Spatium Wallet SDK – the solution for effortless non-custodial crypto wallet creation. Enhance security, user ownership, and blockchain compatibility in your projects.

Spatium Wallet SDK is a powerful software that streamlines non-custodial crypto wallet development. It removes the burden of coding, testing, and implementation, allowing businesses to focus on achieving their goals.

Spatium is launching Wallet SDK soon, aiming to  simplifying non-custodial crypto wallet development. With insights gained since its pioneering use of Multiparty Computation (MPC) technology in 2017, Spatium introduces the non-custodial Spatium Wallet SDK to build secure, user-centric wallets for the web3 era.

Spatium's lightweight yet powerful encryption core, the Wallet SDK, prioritizes user needs. Users maintain full ownership of digital assets and manage wallet interactions with business servers, fostering user loyalty and retention.

Wallets powered by Spatium Wallet SDK confirm transactions through encrypted secrets scattered across various locations, enhancing security. The absence of a Single Point of Failure (SPOF) ensures wallet integrity, even if one secret is compromised.

Designed for accessibility, Spatium Wallet SDK benefits both non-technical users venturing into web3 and blockchain enthusiasts. The adoption of Spatium's MPC encryption contributes to wider crypto wallet usage, fostering business growth and competitiveness.

Furthermore, Spatium Wallet SDK facilitates easy wallet access restoration, including encrypted biometric backup, in case of device loss or server issues.

With blockchain-agnostic design, Spatium Wallet SDK supports transactions across EVM-compatible chains and major blockchains. Available natively for iOS and Android, with a Typescript-written SDK for web apps, it offers comprehensive cross-platform support.

Remarkably compact at less than 3 MB, the Wallet SDK accelerates time-to-market by tenfold and optimizes budgets. This allows businesses to allocate resources to new product development, providing seamless user experiences in the crypto world through Spatium.

For more information and business benefits, reach out to Spatium directly.

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Making a crypto wallet from scratch is no easy feat. It requires the team of blockchain experts, as well as thorough security measures to protect the coins and NFTs inside. So it often ends up costing a lot of money and taking months to build. However, there is a way to drastically decrease these expenses – integrating an SDK. In this article, we will explain what it is and how it helps cut the initial investment, as well as list the 10 best crypto wallet SDKs on the market.

The state of crypto in 2023

Despite the ripples sent by the FTX breakdown and the Terra/Luna crash, the cryptocurrency market not only survived, but thrived. It is currently valued at 1.23 trillion USD, with Bitcoin taking up about a half of that. More than 420 million people use cryptocurrencies worldwide.

As the blockchain gold rush continues, there are plenty of businesses willing to sell shovels. The adjacent technology and services market is currently at a USD 7.4B valuation and is expected to grow by more than 66.2% annually. North America is spearheading the industry, with Asia Pacific following close.

Crypto wallet SDKs in a nutshell

An SDK (software development kit) is a ready-made module that can be integrated in an application and perform specific functions. In the case of a crypto wallet SDK, it can be a lot: 

• Accessing different blockchains
• Storing NFTs
• Crypto/fiat exchange
• Private key generation
• Multi-party computations
• AML/KYC compliance
• Compatibility with Web and mobile platforms
• Etc.

These are the main advantages of using an SDK as opposed to building a wallet from scratch:

• Lower initial investment. Buying a license to use an SDK is far cheaper than paying a team of programmers to develop everything from the ground up. This means you can allocate your budget towards other things (e.g. marketing and security audits). Moreover, if the business doesn’t take off, you will have risked far less money.

• Shorter time-to-market. Releasing your product faster means getting customers, cash flow, and feedback sooner. Moreover, it can help you gain an edge over slower competitors.

• Lower maintenance. The SDK provider is responsible for keeping their product up-to-date, compliant, and secure. This means your own team can focus on other aspects of your solution.

10 Best crypto wallet SDKs

Now let’s see the best products currently on the market. 

1. Coinbase

The second-largest crypto exchange also offers a non-custodial wallet SDK. It has a native Android and iOS versions, but it also supports Flutter and can be made into a browser extension. 

It has the following features:

• Multi-blockchain support
• Adding custom networks and tokens
• NFT storage
• Testnet faucets (browser extension only)
• Private key export
• Transaction outcome preview

It is also thoroughly documented for easier integration and debugging.

2. Spatium

Spatium is a mature startup whose product many consider the best crypto wallet SDK on the market. Spatium’s key difference is the implementation of multi-party computations, combining the benefits of both custodial and non-custodial storage. The wallet’s private key is separated into two or more “shards” and stored on the client (user’s device) and server. If the user wants to migrate to another app or close their account, the key can be exported. And to restore the key, it uses biometric authentication. As a result, no one can access the wallet except for the user, even if the device or server are compromised. Moreover, it soon will include a guarantor that will ensure the wallet’s safety even if Spatium goes out of business. 

This is what the wallet SDK features:

• Native Android and iOS versions, as well as a web version
• Multichain support
• NFT storage
• Ready-made UI
• Generation and synchronization of shards
• Public address generation
• Gasless transactions

In addition, Spatium offers a wallet cloud – an additional service that includes authentication, address info, crypto/fiat exchange rates, and other functionalities necessary for a modern crypto wallet. It simplifies third-party interactions that would otherwise have to be made from scratch. 

If you are interested in seeing how it works, contact us and book a free demo.

3. Venly

Venly specializes in all things blockchain. Their product line includes a reliable crypto wallet, available as a widget or via API. The functionality is mostly the same for both versions:

• Create Wallets for your users
• Retrieving the native balance of these wallets
• Retrieving the (non-)fungibles (ERC-1155, ERC-721 and ERC-20) of these wallets
• Performing transfers of native and fungible tokens on these wallets
• NFT-transfers
• Contract calls
• Signing messages with these wallets
• Importing/exporting wallets

The differences are under the hood and are invisible to the end-users.

4. Fireblocks

With over 130M wallets and over USD 4T in transactions, Fireblocks is one of the premier providers of crypto wallets as a service. It offers SDKs in JavaScript and Python, as well as a REST API that the developers can interact with. 

Fireblocks has the following functionalities:

• Hot, warm, and cold wallets
• MPC protection
• Role-based access
• Gas station
• AML/KYT compliance

5. Cryptoapis

The aptly named Cryptoapis provides a host of software components and services for Web3 applications. This includes a solution for creating crypto wallets under the brand Vaultody. It is an advanced product with many features: 

• Hot and warm wallets
• Multi-party computations (MPC)
• Automation
• Approval chains
• Hardware enclaves
• AML/KYT integrations
• Freeze wallet/Working hours

It also has thorough documentation and API reference.

6. Kryptogo

Kryptogo started out offering due diligence software based on blockchain technology, but then branched out in other DeFi offerings. Today it has a B2C crypto wallet app, as well as a wallet-as-a-service product. This is what it includes:

• Multi-chain support
• Payment management system
• Flexible UI
• NFT storage
• Multi-party computation
• Asset management
• KYC/AML

7. Liminal

Liminal offers a variety of blockchain-related products for regular users and businesses alike. This includes a wallet API and SDK (in JavaScript and Typescript). The SDK, however, is only server-side. This is what it allows you to do:

• List all wallets, including hot Wallets
• List wallet balances and transactions
• Generate addresses hot wallets
• Access Public Keys of addresses
• Access HSM devices
• Create and sign transactions
• Monitor transaction status

Liminal also has a self-custody wallet product, interoperable with their SDK.

8. Magic

Magic offers two versions of their SDK, similar in their functionality. The first is the plug-and-play option, the second is a more customizable white label one. Unlike others on this list, it focuses on access control and authentication. This is what it offers:

• Authentication without a seed phrase
• Email collection
• Transaction signing
• Wallet widget
• Fiat on-ramps
• Customizable UI

Magic has native SDKs for iOS and Android, as well as a version for React Native (currently in beta).

9. DFNS

DFNS puts an extra emphasis on the security of its offering. Its official website proudly lists a number of completed and ongoing penetration tests and audits to show this commitment. DFNS offers a Web3 API and a Typescript SDK to make working with it easier. Here’s what it can do:

• Authentication without a seed phrase
• Wallet creation
• Role-based access
• Multi-chain support
• Over 1000 integrations
• Testnet

The integration list is especially impressive, and includes not just blockchains and tokens, but also accounting, anti-fraud, and token issuance solutions.

10. Sepior

Sepior is a Denmark-based provider of secure infrastructure for Web3 projects. Its product line includes various solutions for storing and managing digital assets: wallet creation, key management, MPC for existing wallets and more. For this list, the most fitting product is Sepior Advanced MPC Wallet. This is what it is able to do:

• Wallet creation (hot/warm/cold)
• Multi-layered MPC
• Access and transaction policy management
• Flexible quorum approvals
• Support for high-frequency trading wallets

Conclusion

There isn’t a product that could be called the best crypto wallet SDK. All of them differ in their feature sets, pricing, support quality, etc. Test a few options and see what works for your business goals. And if you need help with that, contact us.

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