MPC Wallet Technology

Learn how Mixin Messenger uses Multi-Party Computation (MPC) technology to protect your digital assets.

What is MPC?

MPC (Multi-Party Computation) is an advanced encryption technology that allows multiple parties to jointly compute a function, but each party does not know the input data of other parties.

In cryptocurrency wallets, MPC technology is used for:

• Distributed storage and use of private keys
• Eliminating single point of failure risks
• Providing higher security

Mixin's MPC Implementation

Decentralized Architecture

Traditional wallet private key storage:

Private Key → Stored on a single device
Risk: Device loss or theft = Asset loss

Mixin MPC wallet approach:

Private Key Fragment 1 → Your device
Private Key Fragment 2 → Trusted node A
Private Key Fragment 3 → Trusted node B
Private Key Fragment 4 → Trusted node C

Complete private key never appears in any single location

How It Works

1. Key Generation

   • When creating an account, the private key is split into multiple fragments
   • Each fragment is separately encrypted and distributed for storage
   • Any single fragment cannot derive the complete private key

2. Transaction Signing

   • When initiating a transaction, multiple fragments need to work together
   • The signing process is completed in a distributed environment
   • The complete private key is never reassembled

3. Security Guarantee

   • Even if a node is compromised, assets remain secure
   • Enough key fragments are needed to control assets
   • Each fragment is encrypted and protected

Built-in Two-Factor Authentication

Mixin MPC wallet has built-in two-factor authentication (2FA):

First Factor: Device

• Your phone or computer
• Stores one of the key fragments
• Protected by biometrics or PIN code

Second Factor: Distributed Nodes

• Multiple secure nodes
• Each stores other key fragments
• Automatically participates in transaction verification

Advantages

Compared to traditional 2FA:

• ✅ No need for additional devices or apps
• ✅ Cannot be bypassed or disabled
• ✅ Works automatically, no manual operation needed
• ✅ Higher security level

Security Features

1. Prevent Private Key Leakage

Risks of Traditional Wallets:

• Private key stored in a single location
• Once leaked, assets immediately at risk
• Malware can steal complete private key

MPC Wallet Protection:

• Private key distributed storage
• Single fragment cannot be used
• Malware cannot obtain complete private key

2. Prevent Single Point of Failure

Example Scenarios:

• Phone lost or damaged
• Hardware wallet stolen
• Storage device failure

MPC Solution:

• Recover on new device using mnemonic phrase
• Key fragments redistributed
• Assets remain secure

3. Quantum Resistance

MPC technology provides better protection against future quantum computing threats:

• Distributed architecture increases breaking difficulty
• Can upgrade encryption algorithms
• Does not rely on single encryption scheme

Comparison with Traditional Wallets

Feature	Traditional Wallet	Mixin MPC Wallet
Private Key Storage	Single location	Distributed storage
Security	Depends on device security	Multiple protections
Recovery Mechanism	Mnemonic phrase only	Mnemonic phrase + Social recovery
Single Point of Failure	Exists	Does not exist
2FA	Optional	Built-in
Ease of Use	Complex	Simple

Social Recovery Mechanism

Mixin MPC wallet also supports social recovery:

How It Works

1. Set Recovery Contacts

   • Select 3-5 trusted people
   • System shares recovery key with them

2. Key Shard Storage

   • Each contact gets a key shard
   • Multiple shards needed to recover account

3. Recovery Process

   • If you lose mnemonic phrase
   • Request agreement from enough contacts
   • Regain account access

Advantage

Even if you lose your mnemonic phrase, you can recover your account through trusted friends without worrying about permanent asset loss.

Battle-Tested Reliability

Mixin MPC technology has been verified through years of practical use:

• Running Time: Since 2017
• User Count: Over 1 million users
• Transaction Volume: Processed millions of transactions
• Security Record: Zero major security incidents
• Open-Source Audit: Code completely open-source, reviewed by community

Technical Architecture

Key Management

User Mnemonic Phrase
    ↓
BIP39 Seed
    ↓
Key Sharding Algorithm (Shamir's Secret Sharing)
    ↓
┌─────────┬─────────┬─────────┬─────────┐
│Fragment1│Fragment2│Fragment3│Fragment4│
│ (Local) │ (NodeA) │ (NodeB) │ (NodeC) │
└─────────┴─────────┴─────────┴─────────┘

Transaction Signing Process

1. User initiates transaction
   ↓
2. PIN code verification
   ↓
3. Distributed signing request
   ↓
4. Each node calculates signature fragment
   ↓
5. Aggregate signature fragments
   ↓
6. Generate complete signature
   ↓
7. Broadcast transaction to blockchain

Best Practices

Protect Your Account

1. Save Mnemonic Phrase Securely

   • This is the ultimate recovery method
   • Physical backup, offline storage

2. Set Up Social Recovery

   • Choose trusted contacts
   • Regularly check recovery settings

3. Use Biometrics

   • Enable fingerprint or facial recognition
   • Increase local device security

4. Regularly Update PIN Code

   • Use strong PIN codes
   • Avoid simple combinations

Common Questions

Is MPC wallet more secure than hardware wallet?

MPC wallets and hardware wallets provide different security models:

• Hardware wallet: Private key isolated in hardware device
• MPC wallet: Private key distributed in multiple locations

MPC advantages:

• No single point of failure
• More flexible recovery mechanism
• Built-in multi-signature

Can nodes steal my assets?

No. Reasons:

• Single node only has key fragment
• Multiple fragments needed to sign transactions
• Nodes do not trust each other
• Your device must participate in signing

What if Mixin company goes bankrupt?

Your assets remain secure:

• Can recover to other wallets using mnemonic phrase
• Private key fragments can be recombined
• Assets stored on blockchain, not on Mixin servers

Learn More

• Create Account - Start using MPC wallet
• Social Recovery - Set up social recovery
• Wallet Recovery - Learn about recovery mechanisms
• Transfer & Receive - Learn to use wallet