Security of digital assets remains among the top discussions in the cryptocurrency industry as exchanges and individuals keep losing their millions in digital assets to hackers and other third parties.
Just recently, AAX, a cryptocurrency exchange platform, announced it would be introducing Multi-party computation (MPC) to all VIP and institutional investors. Like many before it, the exchange will be adding this new protocol to help increase security on its platform. Hacks on crypto exchange continue to rise with EXMO and KuCoin being among the latest victims.
While making the announcement, AAX CEO Thor Chan explained:
“MPC provides the bedrock of security for cryptocurrencies and digital assets… We’re thrilled to offer this premium level of security to our VIP and institutional investors. It will give our current clients and prospects complete faith and peace of mind, knowing that we have the very best security to match our world-class crypto exchange platform.”
AAX, powered by the LSEG Technology by the London Stock Exchange Group, was reportedly established to increase institutional participation in the cryptocurrency market. Adding MPC will help the exchange better its performance, security, and integrity. The exchange offers crypto futures, P2P fiat trading, saving products, over 50 spot pairs, and top-grade API connectivity.
MPC is a cryptographic protocol that powers shared computation while protecting the security and privacy of data. It eliminates the risks of storing private keys either in a single location or by individuals. It functions by decentralizing the private keys by breaking the data into chunks. These are then divided among trusted parties.
MPC makes it impossible for hackers to attack the system. Notably, any individual wishing to attack an MPC system has to hack multiple encrypted keys located in an unknown place. The process has to be fast, if not simultaneous.
The decision comes days after the exchange recorded the highest amount of fiat deposits into the exchange. The exchange recorded over $10 million in 10 days in April deposited peer-to-peer, fiat gateways, and direct bank transfers.
At the time, Chan explained:
“For many years, the on and off-ramps between crypto and fiat have acted as a bottleneck. Now that the infrastructure is in place, we’re seeing more and more individuals transition into Bitcoin for its disinflationary qualities or seek exposure to altcoins for portfolio diversification.”
Last month, the exchange joined the Global Digital Finance (GDF), an organization created to promote the adoption of best practices and standards in the cryptocurrency market.