One of the greatest challenges cryptocurrency exchanges face is the threat of hackers successfully compromising keys and emptying wallets. Covering all the possible attack vectors on top of all the other responsibilities of running crypto exchange poses a serious challenge for even the most diligent exchange team.
To mitigate the risks associated with storing and transferring cryptocurrencies and other digital assets, Centralex has partnered with Fireblocks, an all-in-one platform that boasts secure scalability for digital assets, cutting-edge MPC (multiparty computation) wallet infrastructure, and chip-level hardware isolation technology. Fireblocks is the #1 wallet platform for storing, transferring, and issuing digital assets among institutions and across exchange platforms.
Fireblocks’ advanced MPC wallet setup sets it apart from the competition, making it the choice of institutions who wish to safeguard their assets while maintaining easy access to them. As of mid-March 2021, Fireblocks has transferred over US$400 billion in cryptocurrency assets, making it a leader in the custodial digital asset transfer niche.
To date, Fireblocks has over 30 exchanges and 200+ institutions with support for 300+ (and growing) tokens on its Asset Transfer Network. The network allows participants to transact with maximum security 24/7. Joining the Fireblocks’ network provides Centralex with seamless, unfettered access to exchanges, counterparties, OTCs, custodians, liquidity providers, and fiat on/off ramps.
One should not underestimate the groundbreaking nature and capability of MPC-based wallets. Before MPC, a private key stored in one place, such as an exchange, posed the risk of having a “single point of compromise”. If anyone managed to get hold of that key, the wallet could be emptied in an instant. With MPC wallets, in contrast, the private key of each account is split into shards, encrypted, and stored on Fireblocks industry-leading decentralized infrastructure. It’s important to note that the individual shards, or pieces, reveal nothing by themselves, so even if a hacker were to gain access to one piece, they would have achieved precisely nothing. In the words of Fireblocks: “To gain control over a user’s wallet, [hackers] need to attack multiple parties across different operating platforms at different locations simultaneously.” The likelihood of this happening is remote.
So what does all this mean for Centralex users? First, integration into the Fireblocks custodial solution clearly improves security for the storage of users’ digital assets. Users’ private keys are never stored on Centralex servers. In fact, in this system, private keys are never stored in one piece on any single server.
Second, Fireblocks’ MPC-based technology makes transactions easier and faster. Fireblocks’ partners can simply search for the network counterparty they wish to transact with — no more adding whitelisted wallets or accounts — thus dramatically improving transfer speeds. In fact, Fireblocks estimates an 8X improvement in speed over the industry average, which effectively means transaction times are reduced to a few seconds. Combining the Fireblocks’ network speed and Centralex’s proprietary optimizations and speed enhancements should make the Centralex exchange app one of the fastest on the market, much to the delight of its users.
Most importantly, the MPC architecture, in combination with the Intel’s SGX hardware isolation technology, creates a secure transfer environment layer, thereby helping to eliminate many of the security risks that have plagued what we might now call “legacy” transfer methods. As Centralex CSO, Marin Matakovic commented: “Fireblocks helps Centralex eliminate the risks associated with digital asset transfers, such as cyber-attacks, internal collusion and human error.” With this assurance, users can rest easy and “feel safe when using the Centralex platform”.
The partnership with such a formidable player in the custodial space as Fireblocks shows just how seriously Centralex takes the security of its platform and the safeguarding of its clients’ accounts. The integration of Fireblocks, along with Centralex’s other security enhancements and protocols, regular audits, and pentesting, should instill in the user a high level of trust and confidence in both the platform and the team.
With super secure transfers and storage of assets covered by Fireblocks’ battle-tested MPC-based infrastructure, the Centralex team can focus more on developing innovative features of convenience and creating the best possible crypto experience for its users.
Disclaimer: The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.