jackclancy.eth 🎩 pfp
jackclancy.eth 🎩
@0xjack
FC poll: how big of a role do MPC wallets play in next wave of adoption?
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borodutch pfp
borodutch
@warpcastadmin.eth
i've got a question about MPCs that quick googling couldn't answer: if both i and the service i use have a "secret share", can the service "recover" my wallet without my knowledge and transfer all funds away?
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haltakov.eth pfp
haltakov.eth
@vlad
In an MPC scheme you have to define how many shares are enough yo sign a transaction. In a 2 out of 2 scheme the service cannot do this.
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borodutch pfp
borodutch
@warpcastadmin.eth
also if it's 2 out of 2 scheme and the wallet provider for some reason decides to lock you out of the funds — e.g. sanctions — would they be able to do so? if yes, how is it different from traditional banking? not criticizing, i'm really curious (and somewhat ignorant)
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haltakov.eth pfp
haltakov.eth
@vlad
Yes, this is indeed a problem - you are spot on! ZenGo for example have a VERY complicated procedure that is supposed to allow you to recover your funds in all cases, but still I don’t believe it is really solving the problem.
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borodutch pfp
borodutch
@warpcastadmin.eth
yeah so far it feels like MPC in most use cases for general public is just custodial wallets under a different cover
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haltakov.eth pfp
haltakov.eth
@vlad
Yeah, but it can be better. Imagine a 2 out of 3 with one share on your phone, one on your laptop and one on a piece of paper in a safe.
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borodutch pfp
borodutch
@warpcastadmin.eth
isn't this just keeping your seed phrase in a bank safe (or a couple of seed phrases for multisig) but with extra steps? also we're talking general population here, not privacy-conscious people like us for them this is the same as custodial wallets which *is bad* IMO
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haltakov.eth pfp
haltakov.eth
@vlad
I think of it more like a 2FA with your backup codes printed - something more people (not all though) are used to. The benefit is that leaking one of the secrets is not critical as it would be with the seed phrase. Therefore, you can give it to a friend to keep it for example.
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haltakov.eth pfp
haltakov.eth
@vlad
But I see your point - MPC doesn’t automatically solve the issues. I’ll think more about it! Thanks for the pushback and showing me some other perspectives!
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borodutch pfp
borodutch
@warpcastadmin.eth
the thing about "leaking" isn't the part why custodial solutions are bad; even fully custodial web2 products when "leaked" don't leak the actual password, most of the time it's a hash the bad thing is a government forcing to close your account or the company doing this
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