- The circle creates new services to ease the burden on developers.
- Circle intends to let users choose the best wallet security for them.
Circle has launched a new service and API with the intention to allow developers to create customized wallets for their users.
The USD coin issuer released a beta version of a multiparty computation (MPC) wallet service, and according to an announcement made by the company, the new service will enable developers of the DeFi app, Web 3 video games, E-commerce services, and other blockchain-related applications create wallets to fit the specific needs of their users.
The new service will be available initially on Ethereum, Polygon, and Avalanche.
Multiparty wallets are secured by splitting a user’s private key into multiple parts and then distributing them through a decentralized network. The technology is a newly developed wallet technology that several Web 3 developers have used.
MPC wallets can be accessed through an application programming interface, which gives them a Web 2 feeling, which users and developers heavily prefer.
According to a blog post from Circle explaining the service, it will reportedly allow users to choose the best wallet security and control their configurations, an example being developers wanting to host their own MPC nodes to ensure they do not rely entirely on Circle. In contrast, other developers may wish to choose to connect to Circle’s nodes simply.
Developers would also be able to choose to share transaction signing responsibilities with their users, which will allow them to recover keys if their users ever lose them; they also have the option of making the product noncustodial by requiring their users to sign every transaction.
Circle’s co-founder and CEO, Jeremy Allaire, added that the new service is an essential component in promoting USDC. The programmable wallet is a part of the firm’s new strategy to bridge global advancement, mainstream utility, and the adoption of digital assets like USDC and other public blockchain-based payments. The new platform also sets the first move into Circle’s Web 3 services as the company works on easing burdens for developers.
Multiparty wallets have been in the throes of controversy following a hack on the widely used Multichain MPC bridge that was hacked on July 7, which caused investors to record a loss of over $100 million. The team behind Multichain admitted later that all MPC shards had been kept in store on a cloud server under the control of the MPC CEO.
In a statement sent to Cointelegraph, the senior director of product management at Circle, Gagan Mac, claimed that the new service Circle is working on has been built and maintained within the company and will not make use of external vendors, which implies that any third party cloud storage systems would not be made use of in the creation.
Gagan also added that some developers and enterprises could also choose to host an MPC node, which they would have the option to do if they wished, which is a different route from Multichain which doesn’t allow partners to host their nodes.
Conclusion
In a recent statement, Circle stated that there had been a rise in demand for euro-based stablecoins and also included an argument that creating a yuan stablecoin would be of a more significant benefit than a Chinese central bank digital currency.
