dWallet Labs Launches First Scalable MPC to Web3

dWallet Labs, a cybersecurity company specializing in blockchain technology, today announced the release of Tiresias, which will make it possible to apply massive-scale threshold Paillier settings with thousands of parties in real-world scenarios, Bankless Times learned from a press release.

Benefits of trustless MPC

Tiresias will open the possibility of performing Multi-Party Computation (MPC) between thousands of participants in a trustless way, as part of the development of the Odsy Network and the dWallet primitive.

MPC and threshold cryptography is used by many financial institutions and users in Web3 to secure assets and remove the single point of failure that private keys create. MPC protocols used in Web3, mostly generate ECDSA signatures (which is the most widely used signature algorithm in blockchains today) with a threshold of parties instead of one private key.

Existing state-of-the-art Threshold ECDSA protocols such as Lindell’s protocol (Lindell 17) Gennaro and Goldfeder’s protocols (GG18, GG20) and MPC-CMP are utilized across solutions such as custodians (e.g. Fireblocks, Copper), wallet providers (e.g. Coinbase, ZenGo) and distributed networks (e.g. Thorchain, Qredo).

Yehonatan Cohen Scaly, CTO at dWallet Labs and Co-Founder of Odsy Network, commented:

The problem with MPC protocols like these is that they either require a trusted setup or are limited by performance to a very small number of participants. The premise of Web3 is that the only way to be trustless is with strong decentralization, so having a small number of participants is just as unacceptable as having to trust one entity.

Vast potential

The promise that MPC holds for Web3 has not been fully unlocked yet due to this limit on decentralization. THORChain allows for the most parties with a threshold of ⅔ of up to 20 participants – which is still very far from being decentralized.

Web3 projects who try and implement MPC in the context of a permissionless network (e.g. ICP, THORChain, Lit Protocol etc.), end up implementing the MPC outside of the permissionless settings, in a very small subset of parties.

Existing state-of-the-art MPC protocols require unicast communication between participants, i.e. every participant needs to communicate with every other participant, meaning a quadratic growth in complexity with every participant that is added – or O(n²), which leads to a very low cap on the number of participants.

Dolev Mutzari, VP of Research at dWallet Labs added:

With Tiresias, unicast communication can be replaced by broadcast communication, remaining true to a blockchain design while also reducing the complexity of communication from quadratic to linear – or O(n) – potentially opening the door to threshold protocols with hundreds, thousands or even tens of thousands of participants.