USDC issuer Circle launches MPC wallet beta for Ethereum, Polygon, Avalanche

cointelegraph.com:

USD Coin (USDC) issuer Circle has released a beta version of a multiparty computation (MPC) wallet service, according to an Aug. 8 announcement. The new service will allow developers of decentralized finance (DeFi) apps, Web3 video games, e-commerce services and other blockchain applications to create customized wallets specifically for their users. It will be available initially on Ethereum, Avalanche and Polygon.

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MPC wallets are secured by splitting a user’s private key into multiple shards and distributing them through a decentralized network. It’s a new wallet technology many Web3 developers have been using. MPC wallets can be accessed via an application programming interface, giving them a “Web2 feel” that some developers and users prefer.

According to an explanatory blog post from Circle, the new service will allow developers to “choose the best wallet security and control configurations.” For example, some developers may want to host their own MPC nodes to ensure they are not completely reliant on Circle, while others may want to choose the simpler method of connecting to Circle’s nodes. Developers can also choose to “share transaction signing responsibilities with the users,” allowing them to recover keys if users lose them, or they can make the product noncustodial by requiring users to sign every transaction.

According to Circle co-founder and CEO Jeremy Allaire, the new service is essential in promoting the use of USDC:

MPC wallets have faced