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.

To help you better understand the differences between Desig Protocol and Account Abstraction, we've compiled a handy comparison table highlighting each solution's pros and cons. Ultimately, the choice between Desig Protocol and Account Abstraction will depend on your needs and use case.

So if you're interested in learning more about these two solutions and which one is right for you, read on!

Account Abstraction: A solution for smart contract wallets

Account Abstraction is a solution for smart contract wallets that allows them to pay transaction fees on behalf of their users. This feature eliminates the need for users to maintain a separate ether balance for each smart contract wallet they use and simplifies the user experience.

Account Abstraction enables smart contracts to interact with other smart contracts without requiring users to approve each transaction individually. This feature simplifies the user experience and makes smart contract wallets more convenient.

Desig Protocol: A multisig solution for any blockchain

Desig Protocol aims to provide a secure and convenient multisig solution for any blockchain ecosystems. By offering a blockchain-agnostic solution, Desig provides users with a consistent experience across multiple chains, helping to reduce fragmentation in the market.

Desig Protocol uses threshold signature schemes (TSS) to split the master key into shares and distribute them among signers. When a transaction is proposed, each signer uses their key shares to show their approval or rejection. If the threshold criteria are met, the collected key shares are combined into a valid master key. This way, even if one person's key share is compromised, the attacker won't be able to recreate the whole master key, making Desig a secure solution for wallet users.

Desig is smartcontractless, meaning there is no point in failure to exploit. And because everything happens off-chain, no fee is charged in the process. Signers can also be added or removed easily, and the key shares are automatically sent to all members added.

Desig vs. Account Abstraction

To better understand the differences between Desig Protocol and Account Abstraction, we can draw a comparison table as follows:

Conclusion

Both Desig Protocol and Account Abstraction provide valuable solutions to improve the user experience and security of managing funds in the Web3 ecosystem. Desig Protocol offers a blockchain-agnostic and multisig solution that enables secure and convenient management of funds across multiple chains using TSS. On the other hand, Account Abstraction provides a more simplified user experience for smart contract wallets by enabling smart contracts to pay transaction fees on behalf of their users.

While Desig Protocol may be more secure due to its smartcontractless nature and easy addition and removal of signers, Account Abstraction simplifies the user experience by eliminating the need for users to maintain separate balances for each smart contract wallet and enabling smart contracts to interact with each other seamlessly. However, it may result in unexpected behavior if the wallet does not have sufficient funds to pay transaction fees.

Ultimately, the choice between Desig Protocol and Account Abstraction will depend on the user's specific needs and use case. Both solutions have pros and cons, and it is important to consider these factors when deciding.

From ImToken’s most recent crypto wallet report, we noticed a trend in crypto users’ fear of security. 29% of users fear their wallets being hacked. 18% fear losing their wallets by their own mistake. 40% are willing to pay up to $100 for a new solution to solve all existing issues with their wallet. 51% are willing to switch to a new brand with added security, in the form of multi-factor authentication.

We are only at the start of 2023 now, and the Web3 market already lost over 180 million dollars over 155 hacks. This situation is why we decided to build Desig Protocol - a blockchain-agnostic multisig solution.

Desig divides the master key into shares and gives each signer a share to keep. When someone proposes a transaction, each signer will use their key shares to approve or reject. If Desig collects enough approvals, the key shares will be combined into a valid master key. This way, even if one signer’s key share is compromised, the attacker won't be able to recreate the whole master key. Signers can also be added or removed easily. The key shares are automatically sent to all members added, so no time is wasted.

There are no differences between Desig’s combined signature and other single-key wallet’s master key signature. Since all DApps are designed to be compatible with standard single-key wallets, naturally, Desig is compatible with all DApps.

By applying TSS off-chain, Desig is smart contract-less, so there is no point of failure to exploit and no fee is charged in the process. Due to its blockchain-agnostic nature, Desig is naturally scalable. It doesn’t rely on smart contracts, which means no devs are required to bridge Desig to any new chain.

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