The setup described focuses on a two out of two Multi-Party Computation (MPC) wallet, where two signatures are required for each transaction from two parties: the user & the service provider (pier).
- The user holds a key share & should create a backup using iCloud or similar
- pier holds a keyShare & creates a backup
- The user and pier can sign transactions independently, but both key shares are required to sign a transaction
- The user can recover their wallet with their backup keyshare
- Important: If the user loses their keyshare - they cannot recover. This makes the wallet self-custodial.
- All transactions and user events (like recovery) are displayed in the pier SaaS dashboard
In the key share generation phase, the user, service provider, and backup each play a crucial role in creating and safeguarding key components, ensuring secure and distributed access.
The process of signatures and transactions delves into how the MPC wallet operates in practice, detailing how the consent and coordination of two out of the three parties validate and authorize each transaction.
In a 2 out of 2 setup, there is no re-sharing, only recovery.