MPC Wallets

Threshold signature wallets that eliminate single points of compromise

MPC Wallets

Paratro uses Multi-Party Computation (MPC) to secure wallet private keys. Instead of storing a complete key in one location, the key is split into multiple shares distributed across independent parties. A configurable threshold of shares must cooperate to sign any transaction.

How It Works

1. Key Generation — A distributed key generation (DKG) ceremony creates key shares without ever assembling the full key
2. Share Distribution — Key shares are distributed across multiple independent parties (Paratro servers, client devices, backup storage)
3. Threshold Signing — When a transaction is approved, the required threshold of parties participate in a signing ceremony to produce a valid signature
4. No Full Key — The complete private key is never reconstructed at any point in the process

Threshold Configurations

Configuration	Signing Requirement	Use Case
2-of-3	2 out of 3 key shares	Standard operations
3-of-5	3 out of 5 key shares	High-value wallets
Custom	N-of-M	Enterprise requirements

Creating an MPC Wallet

cURL

curl -X POST https://api.paratro.com/v1/wallets \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "name": "Operations Wallet",
    "chain": "ethereum",
    "type": "mpc",
    "threshold": {
      "required": 2,
      "total": 3
    }
  }'

Key Share Management

Key shares can be stored across different locations for redundancy and security:

• Paratro Cloud — Managed infrastructure with HSM protection
• Client Device — Mobile app or hardware device held by key stakeholders
• Backup Share — Encrypted backup in customer-controlled storage

Key Rotation

Paratro supports proactive key rotation — key shares can be refreshed without changing the wallet address or requiring on-chain transactions. This limits the window of exposure if a share is compromised.

curl -X POST https://api.paratro.com/v1/wallets/wal_abc123/rotate-keys \
  -H "Authorization: Bearer YOUR_API_KEY"

Security Properties

• No single point of compromise — Compromising one share does not reveal the key
• Fault tolerance — Wallets remain operational even if some shares are unavailable (below threshold)
• Auditable signing — Every signing ceremony is logged with participant details
• Chain agnostic — The same MPC protocol works across all supported blockchains