Binance has launched a solution for wallets - "much better multi-signature"
The head of Binance claims that the new TSS solution for cryptocurrency custodians "far exceeds" the level of security provided by multi-signature technology.
Binance today released an open source implementation of the Threshold signature scheme (TSS) library for the elliptic curve digital signature algorithm (ECDSA): from a layman's perspective, a new cryptographic Protocol for generating and signing a distributed key that will reportedly help wallet providers and custodians of crypto assets avoid single points of failure in private keys in distributed key management.
Binance CEO, Chan Peng Zhao, said on Twitter: "I believe TSS (threshold signature scheme) will change the landscape for wallets and custodial services. This technology is far superior to multi-signature." As the exchange explains in a press release:
TSS allows users to define a flexible threshold policy. TSS technology allows us to replace all signature commands with distributed computing so that the private key is no longer the only point of failure.
For example, each of the three users can get a share of the signature's private key, and to sign a transaction, at least two of the three users will have to agree to create the signature.
TSS is implemented outside the blockchain, as opposed to multi-signature protection, which uses fewer resources and reduces the likelihood of potential attacks.
Binance claims that threshold signatures will mean that one hacked device will not put all users ' assets at risk. For business operators, this could help anchor access control policies that are said to prevent both internal and external individuals from stealing corporate funds.
More information about TSS technology can be found on the exchange's training resource, Binance Academy, and the software implementation of the technology can be found in the repository on GitHub.
Binance has invited cybersecurity solutions provider Kudelski Security to conduct a third-party audit of the cryptography and code in Binance's TSS library.
The audit researchers reportedly found that "none of the problems found as part of this audit can be exploited to completely disable the security system or disseminate classified data."