Las Vegas, US: Sepior ApS, a player in threshold cryptography that enables trusted transactions has announced Sepior ThresholdSig, the industry’s first threshold signature wallet security technology based on threshold multiparty computation (MPC).
Sepior’s ThresholdSig is available for integration by cryptocurrency exchange providers and other institutional digital asset traders seeking to offer the most secure cryptocurrency exchange and wallet services available, with the highest blockchain transaction efficiency. It has already been licensed by the leading Japanese financial services firm, SBI Group, to secure the online contents and transactions on SBI’s Virtual Currencies exchange platform, VCTRADE.
Sepior ThresholdSig represents a true breakthrough in cryptocurrency wallet security which benefits the wallet holder, and the exchange facilitating transactions. The wallet holder benefits from the highest available security where multiple parties must approve each transaction using a key that never exists in whole on any device, making it practically impossible to steal. The exchange provider benefits from the best available security for their customers and their own wallet which may hold large amounts of digital assets during the settlement process, as well as compelling operational benefits resulting from off-chain policy administration.
“We’re really excited to bring the industry’s first thresholdsig wallet security technology to market”, said Ahmet Tuncay, CEO – Sepior. “The cryptocurrency market is rapidly evolving, transitioning from the early adopter phase of highly risk tolerant, tech savvy individuals to exploding interest by the mainstream institutional investor market. This market, and the exchanges and wallet providers who serve them, require the best available security, and we know that Sepior ThresholdSig is the perfect solution.”
The cryptocurrency market has been reeling from the loss of more than $1.6 billion in today’s values from cryptocurrency thefts since 2014, and the vast majority of the events are linked to insufficient wallet security. Cryptocurrencies, such as bitcoin, use a public key and a private key to authorize a transaction. The public key identifies the address of the wallet where funds are to be deposited or withdrawn. The private key is typically stored in the wallet and generates the signature to authorize the transfer of bitcoins from the wallet with the corresponding address. If the key is stolen, the bitcoins stored in online “hot” wallets can be stolen and are virtually impossible to recover. As a result, effective private key security is paramount to cryptocurrency security.
Sepior is pioneering the use of threshold cryptography to provide industry leading cryptocurrency security with threshold MPC. Sepior’s technology team is founded and led by some of the industry foremost leaders in cryptography and multiparty computation. These experts in collaboration with industry leading exchange providers have optimized the implementation of threshold MPC to allow a threshold of multiple independent parties, such as 3 out of 4 potential approvers, to collectively approve transactions using a single private key for the blockchain signature, without ever having a full key present on any single device.
MultiSig is the current alternative for multiple parties to approve a cryptocurrency transactions, however it uses a separate private key for each party, and multiple key addresses are recorded with the transaction. This multi-key, multi-signature model may result in substantially larger transaction sizes and can reduce the number of MultiSig transactions to as few as half the number of ThresholdSig transactions per block. Bitcoin transaction processing is already at or approaching capacity limits, so transaction density efficiency is an important attribute.