Building a crypto wallet from scratch is like baking a wedding cake without any recipes or experience. You have to source the ingredients, mix the batter through trial and error, meticulously decorate it, and hope it doesn't collapse before the big day. Why go through all that effort when you can order a beautifully crafted cake from a trusted bakery?
Wallet-as-a-Service provides the crypto equivalent of that bakery experience for developers. Instead of spending months building a crypto wallet from the ground up, you can tap into a ready-made wallet infrastructure to launch faster with lesser hassle.
Key Takeaways
- Building a crypto wallet from scratch is complex and it requires specialized blockchain expertise and months of engineering work. Using Wallet-as-a-Service (WaaS) allows faster time-to-market without unnecessary development cost.
- WaaS provides a ready-made crypto wallet infrastructure that handles all the blockchain, cryptography, and security components behind the scenes. dApp developers can use WaaS to integrate crypto wallets into their apps via simple APIs and SDKs, allowing them to focus on their core business while outsourcing the service to build and maintain the wallet.
- MPC (Multi-Party Computation) wallets split private keys into key-shares that are encrypted and distributed across multiple parties. This removes single points of failure and prevents unilateral control over funds.
- Key benefits of MPC wallets: eliminate single point of failure, asset recovery assurance, and customizable access control.
- MPC Wallet-as-a-Service allows developers to integrate MPC wallets into their dApps.
Challenges of Building Your Own Crypto Wallet
Developing a secure crypto wallet from scratch is no simple task. It requires specialized blockchain expertise and months of engineering work just to handle basic functionality. Then there's the ongoing cost of security updates, maintenance, customer support, and more. Between the complexity of getting a wallet off the ground and the burden of upkeep after launch, more teams are looking for ways to simplify the process. This is where Wallet-as-a-Service provides the perfect turnkey solution.
Wallet-as-a-Service, In a Nutshell
Wallet-as-a-Service (WaaS) allows developers to integrate a fully functional crypto wallet into their apps through simple APIs and SDKs. This ready-made solution handles all the complex blockchain, cryptography, and security components of a wallet behind the scenes. For developers, this means launching your wallet faster without massive internal development costs. You also benefit from the provider's security experts continually updating protocols and features, so you can focus resources on your core product. Overall, WaaS enables faster time-to-market, lower costs, and better security.
What are MPC Wallets?
MPC (Multi-Party Computation) is a cryptographic technique that enables multiple parties to evaluate a computation without ever revealing any of the private data held by each party. A typical example of MPC is where multiple employees jointly compute the average of their salaries while each employee does not reveal their salary to the others.
In recent years, MPC has been utilized in safeguarding private keys for Web3 wallets. As such, private keys of wallets are now split into multiple key-shares and distributed across multiple parties. These parties will jointly sign transactions without ever exposing their individual key-share to one another, or materializing the full private key at any point. This ensures that the private key never exists or resides in any one device, effectively removing the single point of failure and insulating user assets from security attacks and human errors.
Benefits of MPC Wallets
✅ No Single Point of Failure
Key sharding achieves decentralization and ensures that no unauthorized party can unilaterally move your funds, preventing asset loss from external hacks or internal fraud and collusion.
✅ Asset Recovery Assurance
If your key-share is lost or compromised, or in the event of any catastrophic event or system failure, remaining key-shares can collaborate to ensure that you can access and recover your assets.
✅ Customizable Access Control
Users get to define roles and responsibilities for each keyshare holder. This feature is useful for organizations that require strict control over huge amounts of assets.
MPC Wallet-as-a-Service (WaaS)
Imagine building your perfect crypto wallet tailored exactly to your vision, without any of the blockchain or security headaches. Cobo WaaS makes this a reality. Our robust APIs and SDKs empower you to easily integrate a fully customizable, future-ready wallet supporting over 1,800+ tokens across 70+ chains and counting. Focus on your big ideas while Cobo handles all the complex wallet infrastructure behind the scenes.
Cobo MPC Wallet-as-a-Service (WaaS)
Some of the embedded features and benefits include:
Check out Cobo’s WaaS API & SDK here.
Crypto wallets are the barrier of entry to owning digital assets and interacting on-chain. In order to truly onboard the next wave of crypto users, the user experience has to be intuitive and user-friendly for easy navigation. Let Cobo pave the groundwork so you can focus on providing the needs of your users.
Contact us now to find out more!