What Is Dynamic MPC?
"Dynamic MPC" is an advanced features that allows custodians and wallet providers to change the number of shares and the threshold needed to sign, without changing the public key.
Example: A company that manages its Bitcoin treasury and has previously set the quorum to at least 2 signers out of 3 management members, changes it to 3 out of 4, after hiring an additional member. Therefore maintaining both enhanced security and redundancy, in a new operational setting.
Advantages and Use Cases
Dynamic MPC is highly useful in numerous cases and provides product advantages for wallets and custodians, such as:
- Flexibility in Wallet Thresholds: Traditionally, MPC-based wallets require a fixed number of parties (such as 2-of-3) to approve a transaction. With Dynamic MPC, it is possible to modify this configuration on the fly. Like the above example, imagine seamlessly transitioning from a 2-of-3 wallet to a 3-of-4 wallet as your team evolves.
- Advanced Key Management: Under the hood, each MPC-based wallet generates a private key in a distributed manner, ensuring it never exists at any single location. Using advanced cryptography, it is possible to “reshuffle” the private key among a new set of participants, without changing the public key. This means your public addresses remain unchanged, providing continuity and security.
- Customized Treasury Management: Dynamic MPC revolutionizes treasury management. When team members change, you can effortlessly adjust the quorum of signers without altering public addresses. This seamless transition ensures operational efficiency and heightened security.
- Quick Recovery: Dynamic MPC also enables a unique "Quick Recovery" feature. If a party loses its share in a 2-of-3 setup, the remaining parties can swiftly reconfigure the wallet, including the original member, without a full key recovery process. This ensures rapid restoration and continued security.
For more information about Dynamic MPC, feel free to reach out.
