1. “Not your keys, not your coins!”
It is what crypto is all about. Somehow on the flip side, it means “if I lose my keys, I lose my coins”.
Managing keys (private keys and seed phrases) is hard for everyone, yes everyone, from crypto natives to new comers.
2. “Is it possible that I lose my keys, I don’t lose my coins?”
The answer is “no”, as it is the way crypto works. But the question is valid, the point here is that I don’t want to lose my coins if I lose my keys.
If we ask the question in a different way, “Is it possible that I don’t have to manage my keys, so I don’t worry about losing them, meanwhile I still have control over my coins?”
The answer is “yes”, it is possible with technologies like multi-party computation (MPC) and threshold signature scheme (TSS) as well as account abstraction (AA).
3. “How it works?”
In a nutshell, we don’t have to manage our keys, they are still there behind the scene, but they are no longer exposed to us, or hackers either. We can use the methods we are familiar with, such as email, social accounts, mobile phone, Face ID and etc, to “log in to” a MPC or AA wallet to access our assets.
It is much more user friendly now, with security mechanisms such as multi-factor authentication (MFA) and withdrawal limits, it could offer bank-grade security for crypto now.
Somehow nothing is perfect, it introduces new risks and concerns.
To be continued …
