Israeli Blockchain Cyber-security firm GK8 has announced the release its new generation MPC hot wallet that uses dozens of co-signers for each transaction instead of the 2 or 3 co-signers available from most competitors until now.
The fact that the GK8 hot wallet has the most co-signers makes it hugely more resistant to cyber-attack. Now, instead of having to hack into just a few computers, hackers are faced with having to break into dozens of computers, on-premise and in the cloud, in order to obtain the private keys they need.
A patented breakthrough has put GK8 ahead of the field. Before now, having more than 10 co-signers was considered unfeasible given the degradation in performance that made transactions much slower.
For this reason, most hot wallet solutions today have a maximum of 3 co-signers. GK8’s new patented solution makes it possible for dozens of co-signers to be assigned without impacting network performance. The number of co-signers designated to each customer can be varied according to individual security requirements.
Hot and cold wallets
Multi Party Computation (MPC) is a type of hot wallet that splits user’s private keys into shards and divides them between multiple co-signers. Only once all co-signers have signed can a transaction take place.
Hackers commonly target Cryptocurrency Exchanges that use hot wallets and EXMO, a UK based exchange, suffered a hack worth $10 million in crypto assets. The attack had taken place on their hot wallet.
GK8 also has cold wallets covered with the introduction of their patented “air-gapped” cold vault. Transactions can be made to and from the cold vault without a need for an internet connection, thereby completely negating attack vectors across the internet.
Lior Lamesh, CEO and co-founder of GK8 states:
‘’MPCs are typically programmed in a way that once the majority of co-signers (usually 2 out of 3, or 3 out of 4) provide their shard of the key, the request to execute the transaction is authorized. What this means for hackers, is that they simply need to hack into one or two additional computers in order to take over the valuable keys.”
He then goes on to add:
“In our case, trying to break into dozens of co-signing computers is simply an unrealistic task, and even then – our customers keep most of their digital assets protected in the isolated Cold Vault which is completely off the grid”.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.