Blockchain wallets are fundamental infrastructure, serving as the custodians of user assets and the primary gateway into the Web3 ecosystem. However, the industry still relies heavily on users safeguarding long, complex private keys and seed phrases. Losing these often means irreversible asset loss, creating a significant barrier to mass Web3 adoption.
Furthermore, as on-chain activity grows, the risk of massive asset theft due to leaked private keys or seed phrases increases. Securely managing a wallet has become a considerable challenge.
In response, a new type of wallet is emerging as a solution: the keyless wallet. By leveraging MPC (Multi-Party Computation) technology integrated with blockchain signing, these wallets eliminate the need for users to manage private keys or seed phrases entirely.
What Is a Keyless Wallet?
Multi-Party Computation (MPC) is a cryptographic technique that allows multiple parties to jointly compute a function without any single participant revealing their secret piece of the data. For wallets, this means using Distributed Key Generation (DKG) to create separate private key shards. No single party or machine ever holds the complete private key. Signing a transaction requires multiple parties to collaboratively compute a signature.
A keyless wallet built on MPC technology takes one complete private key and splits it into three independently generated shards. A transaction can be signed using just two of these three shards, and crucially, a complete private key is never assembled at any point during this process.
When you create a keyless wallet, the service's server generates key shard 1. Your device generates key shards 2 and 3. Shard 2 is encrypted and stored locally on your device, while shard 3 is encrypted and backed up to a cloud service like iCloud or Google Drive. To sign a transaction, shards 1 and 2 are used. Shard 3 acts solely as a secure backup.
This system still requires a user backup, but instead of a seed phrase, you are backing up an encrypted key shard to a trusted cloud service. This allows for convenient and secure wallet access and recovery from anywhere, at any time, preventing asset loss from a lost device or forgotten seed phrase. The entire process, from creation to being ready to use, takes mere seconds, offering a seamless, key-free experience.
Key Advantages of Using a Keyless Wallet
- No Private Key Management, Eliminating Single Points of Failure: Since the key is created by multiple parties, a complete private key never exists on one device. With three shards held separately, no single shard can control the assets in the wallet. Even if one shard is stolen, it is useless on its own.
- Seamless User Experience for Easy Web3 Access: Seed phrases and private keys create a high barrier to entry for new users. Keyless wallets uphold the core Web3 principle of self-custody while providing a user-friendly, Web2-like experience free from the burden of key management.
- Lower Recovery Costs: If a key shard is lost or compromised, the wallet can execute a key refresh function. This process generates new key shards to replace the old ones across all parties, effectively revoking the lost shard.
For those ready to experience this new standard of security and convenience, the process to get started is straightforward. 👉 Explore secure wallet setup guides
How to Set Up a Keyless Wallet
Creating a New Keyless Wallet
- Download the App: Begin by visiting the official website to download the application to your device.
- First-Time Setup: If you are a new user, open the app and navigate to the Web3 wallet section. Select "I don't have a wallet" and then choose the "Keyless Wallet" option. Follow the prompts, click "Enable Now," and proceed. You will likely need to log in with your exchange account credentials if you haven't already. Finally, click "Create."
- Backup: Complete the process by selecting "Backup Wallet" and entering a password to finalize the backup of your encrypted key shard.
Migrating an Existing Wallet
If you already have a traditional seed phrase wallet and want to create a keyless wallet:
- Go to your Web3 wallet management section within the app.
- Select "Add Wallet" and then "Create Wallet," choosing the keyless option.
- Log in with your credentials if required and click "Create."
- Perform the crucial backup step by clicking "Backup Wallet" and securing it with a password.
Recovering Your Keyless Wallet
Recovery is designed to be straightforward, whether you reset your wallet, delete the app, or get a new device.
Recovery via QR Code (Old Device Available):
- In the app, go to the Web3 wallet and select "I already have a wallet" -> "Recover Keyless Wallet."
- Click "Enable Now" and log in if needed.
- Choose "Scan to Recover" and use your old device to scan the QR code shown on the new device. Once synchronized, your wallet will be recovered.
Recovery via Cloud (Old Device Lost or Shard Compromised):
If your old device is unavailable, you can use your cloud backup.
- Follow the same initial steps to begin recovery.
- Instead of scanning, choose "Cloud Recovery." Select your cloud service (iCloud or Google Drive) and enter the password you used during the initial cloud backup.
- This will download key shard 3 and recover your wallet. Importantly, this process refreshes all three key shards, rendering any old shards invalid. Your wallet address and assets remain unchanged.
Note: After a cloud recovery, the wallet on your old device will become inactive and must be recovered again to be used.
Frequently Asked Questions
Q: I'm used to having a private key. Is it really safe not to have one?
A: While moving away from a single private key may seem unconventional, it actually enhances security. Because the private key is never stored in its complete form on any single device, keyless wallets effectively mitigate the risks associated with traditional private key loss, theft, or exposure.
Q: Can I import my keyless wallet into another wallet app that also supports MPC?
A: Currently, this is not possible. The MPC technology landscape lacks a unified industry standard, and most implementations are custom-built. Therefore, wallets from different providers are generally incompatible. However, you can use your two personal key shards to reconstruct a full traditional private key, which can then be imported into any standard wallet. It's important to note that this action will convert your keyless wallet into a traditional one.
Q: What happens to my assets if the service platform becomes unavailable?
A: Your assets remain secure. The platform only holds one of the three key shards. You retain the other two (on your device and in the cloud). If needed, you can use these two shards to reconstruct the full private key and regain control of your assets on another platform, ensuring true self-custody.
Q: What should I do if the key shard on my device is leaked?
A: If you suspect a local shard is compromised, you should immediately perform a cloud recovery. By connecting to your cloud backup and restoring your wallet, all three key shards will be automatically refreshed and replaced. This action secures your wallet without affecting your address or assets.
Q: Is using a keyless wallet a centralized solution?
A: No, it maintains decentralization. The platform acts only as a service provider holding one shard; it cannot access or control your assets. You remain in full control with your shards. If the service ceases operation, you can still recover your assets using your shards, proving the non-custodial and decentralized nature of the setup.