Which is better for your business: MPC or Multi-sig Wallets?

Both multi-signature wallet and MPC wallet technology are among the best cryptocurrency wallet designed to securely store private keys and initiate transactions.

The following sections discuss the critical aspects of both wallets – in depth:  

Easy management  

Multi-signature wallets are the best cryptocurrency wallet because it democratizes access to funds making governance easy. Before initiating any transactions through a multi-sig wallet, all the holders are required to sign the transaction. On the other hand, MPC wallets allow you to delegate permission corresponding to the duty – deciding who can approve transactions.   

Reasonable gas fees  

Every blockchain charges a basic network fee to process transactions. The network fee heavily relies on the number of operations to be executed on the blockchain. Usually, the gas fee of the blockchain is determined based on the demand for the transaction processing power across the chain. If the demand for processing power is higher, then the gas fee is expected to go up as well. The transactions initiated by the multi-signature wallet constitute additional complexity since multiple partners are involved in the transaction. Multi-wallet transactions are relatively computationally intensive, eventually resulting in higher transaction costs. On the other hand, MPC wallets don’t incur huge fees because most of the signature processing takes place on the underlying chain – but the security aspect is not conserved.   

Quicker transactions  

Often, due to network congestion, the overall transaction processing speed and rates of the underlying blockchain take a nose dive. Processing rate and Speed are among the top factors that help determine whether MPC or multisig wallet is the best crypto wallet in India. With the multi-signature wallet, the processing speed is slow. In the backend, most miners try to squeeze as many blockchain transactions as possible in a single block. In the case of the multi-signature wallet, the transactions received from multi-sig wallets consume relatively extra space because of the additional metadata that comes with them. So, miners try to place it at the end of the stack – which delays the processing. On the other hand, MPC is relatively faster because the signature calculations are conducted on the network level. After processing, only a single small transaction is transferred to the blockchain, eliminating delays and costs – but the security aspect is not conserved.  

If you’re looking for a reliable hot and cold wallet service provider, then Liminal is the best option for you. Liminal is among the leading enterprises offering institution-grade web 3.0 infrastructure, such as a hot wallet crypto platform designed to assist organizations with their digital asset self-custody need.   

Liminal's digital asset custodian platform services such as trezor and ledger hardware wallet are developed with simplicity in mind because the team at Liminal believes that managing digital assets should not be intimidating and complex.   

They have built the entire digital asset custodian platform services including a hot wallet and cold storage wallet with a security-first approach - so that you can sleep peacefully without worrying about the security of your digital assets and funds. And you also receive expert customer support from our team - to resolve challenging technical complications.