3.3. Comparison of Security and Flexibility
MPC-based wallets offer a more secure and flexible approach to digital asset custody and management compared to other wallet categories, including multisig wallets.
On the security front, MPC wallets offer a reduced surface area of attack as organizations interacting with multiple blockchains benefit from a concentrated implementation, avoiding the need to risk using a different multisig implementation on each blockchain. Moreover, unlike MPC wallets, multisig wallets are public-facing, which means that potential hackers can gain insight into an organization's security policies; increasing the potential for social engineering attacks. MPC also enables mobile-first implementations allowing organizations to take advantage of the robust security standards employed by Apple and Android devices which far surpass the security of chrome extensions that are often used in relation to multisig wallets.
In terms of flexibility, MPC-wallets offer a highly flexible yet secure approach to asset custody and management. MPC-based wallets allow for greater flexibility in defining and adjusting the signature threshold, accommodating varying levels of trust and risk tolerance among participants. MPC wallets support more sophisticated access control mechanisms, such as weighted approvals, where different participants have varying levels of authority over certain types of transactions. Furthermore, MPC wallets are ultra-scalable as they can efficiently handle a large number of participants without increasing transaction size or complexity. Conversely, multisig wallets experience increased transaction size and fees as the number of required signatures grows.