Binance Wallet Security
Changpeng Zhao: New Wallet Security Solution ‘Far Superior’ to Multi-Sig
November 8, 2019
Binance Wallet Security
Changpeng Zhao: New Wallet Security Solution ‘Far Superior’ to Multi-Sig
November 8, 2019

Changpeng Zhao (CZ), the CEO of Binance, claims that a newly open-sourced solution for wallet providers and custodians is “far superior” to multi-sig security and will reshape the industry.

On November 6, CZ published a tweet, where he declared:

“I believe TSS (threshold signatures scheme) will reshape the landscape for wallets and custodian services. It is far superior to multi-sig.”

Changpeng Zhao

However, on November 6 itself, Binance has released an open-source implementation of its Threshold Signature Scheme (TSS) library for Elliptic Curve Digital Signature Algorithm (ECDSA): in layman’s terms, a new cryptographic protocol for distributed key generation and signing which will reportedly help wallet providers and custodians to avoid single points of failure in private keys within distributed key management.

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The exchange explains:

“TSS allows users to define a flexible threshold policy. TSS technology allows us to replace all signing commands with distributed computations so that the private key is no longer a single point of failure. For example, each of three users could receive a share of the private signing key, and in order to sign a transaction, at least two of the three users will need to join to construct the signature.”

Likewise, TSS is implemented off-chain, unlike multi-signature protection, thereby using fewer resources and reducing potential attack surfaces.

Binance claims that threshold signatures will mean that a single compromised device which will not put a user’s assets at risk. For business operators, it can help to cement access control policies that purportedly prevent both insiders and outsiders from stealing corporate funds. 

More information about TSS technology is available through the Binance Academy, with the open-source code accessible through GitHub.

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However, Binance invited Kudelski Security, a Cybersecurity Solutions Provider, to conduct a third-party audit of the cryptography and code in the Binance TSS library, which reportedly found that “none of the issues found in the frame of this audit could be exploited” to “completely break the security of the scheme, or recover secret data.” 

Thus, Kudelski entered a strategic partnership with smart contracts auditing firm Hosho earlier this year to combine their skill sets in order to meet the increasingly complex security demands of the blockchain sector.

Source: binance.vision | docs.binance.org | cointelegraph.com


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
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