The world of cryptocurrency is full of challenges – and securing users' funds is undoubtedly at the top of the list. Over the years, the blockchain ecosystem has been plagued with losses and thefts, causing significant financial distress to users.

Traditional solutions like paper and hardware wallets have sought to combat these issues but have also shown their own complexities and limitations. As we enter the Web 3.0 era, a promising new star is on the horizon: social recovery wallets.

The Importance of Security for Crypto Wallets

Ever since the birth of Bitcoin, wallet security has remained a pressing concern. Numerous incidents of hacks and thefts have led to substantial losses, ranging from hundreds to billions of dollars.

These incidents have underlined the urgent need for robust, user-friendly wallet security measures.

The Drawbacks of Hardware Wallets and Mnemonic Phrases

Hardware wallets, although hailed as the gold standard for crypto security, have flaws. They're susceptible to supply chain attacks, and a stolen device with a discovered PIN can lead to significant losses.

Mnemonic phrases, on the other hand, are merely a band-aid solution that presents a new theft vector and demands additional mental effort from users.

The search is on for an ideal wallet design that presents no single point of failure, requires low mental overhead, and ensures maximum ease of transacting.

The Evolution of Multisig Wallets and the Introduction of Social Recovery

Multisig wallets, which require multiple keys to authorize transactions, have existed since 2013. While they offer an added layer of security, adapting them for individual use brings challenges related to key management and transaction approval.

This is where social recovery wallets come into the picture.

They operate with a single "signing key" responsible for approving transactions, while a group of guardians can change the signing key in case it's lost. The signing key holder can add or remove guardians with a delay to prevent immediate changes without consent.

Desig’s new Social Recovery approach

Desig emerges as a trailblazing multisig solution in this evolving landscape, taking social recovery to new heights. It combines the ease of social recovery for User ID with the enhanced security of Threshold Signature Scheme (TSS) and Multi-party Computation (MPC) for multisig wallets.

Our unique approach allows you to recover your wallet password through your trusted social accounts, such as Gmail, Twitter, or Discord. This breakthrough eliminates the need for traditional seed phrases or reliance on trusted guardians, bringing a new dawn of convenience and security in wallet recovery.

To bring this innovative solution to life, we've split your User ID into three distinct shares for a minimum 2 out of 3 (2/3) setup:

Share A: is divided throughout a decentralized MPC network and securely maintained. Access to this share can be set to go through a social login service, such as your Google account, which aligns recovery possibilities with services you already know and use daily.

Share B: The Recovery Share is an extra measure of security created by user-generated data with high entropy, like a complex User Password.

Share C: is stored locally on the user's device and is device-bound. Each device and system's implementation is particular to that one share. For added security, this sharing may, for example, be discretely stored on the device and protected with biometrics techniques.

Desig recovery process is based on the threshold, which is the minimum number of shares required to reconstruct the User ID. This number is set by default to 2, meaning at least two shares are needed to rebuild the private key. This mechanism ensures the private key remains uncompromised even if one of the shares is breached.

Once the User ID is secure, users can create multiple multisig wallets. Each of these wallets utilizes TSS and MPC technologies.

• With TSS, the private key of each multisig wallet is cryptographically divided into three parts, each held by different signers. This provides a higher level of security, as no single signer can control the wallet independently.

• With our decentralized MPC network, Desig ensures the secure storage of these divided key parts, as the network of nodes in the MPC performs computations without revealing the private data of any party, thereby maintaining the integrity and security of each signer's key share.

The Future of Wallet Security is Here with Desig

Desig introduces an unmatched layer of security by ensuring no single point of failure. You no longer have to fret over losing access to your wallet if you forget your password. Desig is all about enhancing convenience without compromising security.

As Web3 enthusiasts, wallet users, or technology experts, Desig's unique and secure take on social recovery warrants your attention. Embark on a safer and more convenient cryptocurrency journey with Desig, connect your social account, and secure your wallet like never before.