How Circle’s New MPC Wallets Can Solve Web3 Business
Operating a web3 business can host a number of unique challenges that are nonexistent in centralized organizations. Due to these challenges, the adoption of web3-based businesses has been slow as more time is required for people to understand the workflow and balance of responsibilities.
In an effort to push through this obstacle, many organizations have begun working on management solutions to help operate web3-based businesses. Circle, one of the leading organizations in the web3 industry, has helped spur this transition to web3 by creating the USDC coin which can be used as remittance due to its stability and their new MPC wallet.
Challenges to web3 businesses
While beneficial for individuals, private keys create an issue when operating in a web3 business because anyone with access to a private key will have control over the contents inside which can create multiple security risks such as losing the private key or seeing funds disappear through negligent/malicious motives.
Further, it means that employees will not have access to certain wallets which are necessary to continue work production. There are many instances when specific wallets are needed to sign certain functions or may have the correct NFT to bypass a token-gate.
Unfortunately, sharing private keys, while easy, is not ideal because that information is highly sensitive and is susceptible to interception when shared online through scams, exploits, and mistakes by computers and hackers.
MPC Wallets offer a solution
To solve this problem, Circle has created a new wallet type for their Circle Account members called a Multi-Party Computation wallet (MPC Wallet) which generates a private key that is broken up and distributed to a certain number of people, meaning that one holder will never be in full control of a wallet.
Instead, a group of employees will all need to give their approval over actions created by a wallet in order to broadcast any activity onto a blockchain. This will help prevent singular control over a wallet used for business purposes. Also, it provides employees with more accountability in the workspace as they are all given a portion of the private key and the ability to facilitate executive decisions.
Circle and Apple Pay
Circle has been a leading figure in the web3 industry because of their USDC coin which is monitored by Grant Thornton, LLP unlike their prime competitor USDT which has been less transparent about their reserves. Due to this, USDC has seen substantial growth on DeFi platforms as a strong stablecoin to grow investments.
In the last month, Circle also announced that they would begin allowing businesses to use Apple Pay through their platform. This option allows web3 businesses to provide fiat options to customers that can then be exchanged for cryptocurrencies through Circle and USDC.
Once these funds reach department wallets, employees will then be able to combine their private key fractions in the MPC wallet where they can reallocate investments and sign any necessary smart contracts; allowing web3 businesses to seamlessly interact with web2 and fiat- based customers without web3 obstacles standing in the way.
