Analyzing Multichain Events: Key Issues and Countermeasures in MPC Wallet Management

Recently, a cross-chain protocol company experienced operational anomalies, sparking widespread discussion in the industry about the management method of MPC( multi-party computation ) Wallet. The company's CEO and team went missing, resulting in the revocation of access keys to the MPC node servers. This incident reveals that merely adopting decentralized technology is not enough to ensure asset security; true decentralization must also be realized in management methods.

Similar situations are not uncommon. Although Bitcoin is decentralized, if a single miner monopolizes all the computing power, its advantage of decentralization will be lost. Ethereum, while decentralized, still sees Vitalik Buterin emphasizing the importance of distributed validation technology to prevent centralization trends.

In-depth analysis reveals that all node servers of the company are actually run by the CEO's personal cloud server account. This highly centralized management approach is essentially equivalent to using a single-signature Wallet to control all assets. Therefore, the root of the problem lies in the fact that the CEO should not control all MPC shards and has not provided a backup plan for extreme situations.

To fully leverage the advantages of MPC technology, it is essential to focus on the following three aspects:

1. Increase transparency to prevent conflicts of interest
2. Strictly adhere to the principles of decentralized custody to avoid excessive concentration of power.
3. Develop contingency plans for extreme situations

First, preventing conflicts of interest requires rejecting the "black box". The company's MPC solution is essentially an opaque black box, as it serves both as the service builder and the user, which can lead to opacity and opportunities for wrongdoing. The solution is to introduce neutral third-party MPC service providers to enhance transparency and verifiability.

Secondly, decentralized custody must resolutely avoid single point risks. A multi-signature scheme can be adopted, ensuring security through high-strength encryption and trusted execution environments. At the same time, multi-level private key derivation should be implemented to balance global control and specific permission management. In addition, a multi-backup mechanism should be adopted, such as online geographically distributed active storage and offline cold storage, to minimize asset loss or service interruption risks.

Finally, in extreme cases, an "SOS mode" can be designed as an emergency response plan. When specific conditions are triggered, the SOS shard can replace the ordinary private key shard to facilitate emergency asset transfer or disposal. To prevent abuse, additional restrictions such as delayed effectiveness and lock-up periods can be implemented.

In summary, while MPC technology is advanced, its management approach is equally crucial. Only by achieving decentralization through the collaboration of technology application and management methods can the advantages of MPC truly be realized, ensuring asset security.