Announcing the 2PC-MPC Paper
dWallet Labs released 2PC-MPC — the first multiparty protocol enabling ECDSA signature generation in a noncollusive manner, certified by a user and a massively decentralized network. This protocol powers dWallets, a new Web3 primitive at the core of the Ika Network — a composable modular signature network.
The 2PC-MPC framework ensures ECDSA (and future EdDSA and Schnorr) signatures require both user participation and a threshold of permissionless network nodes, potentially hundreds or thousands.
Limitations of Existing MPC Signature Protocols in Web3
MPC and threshold cryptography secure assets across traditional finance and Web3. ECDSA is the most widely used blockchain signature algorithm, with Threshold ECDSA protocols deployed by custodians (Fireblocks, Copper), wallet providers (Coinbase, ZenGo), and federated solutions (Thorchain, Lit, Zetachain).
"Existing threshold signature protocols lack decentralization, scalability, and secure access structures preventing network collusion. 2PC-MPC solves all these issues." — Yehonatan Cohen Scaly, CTO at dWallet Labs
Existing MPC algorithms require t out of n parties for signature generation. For noncollusive networks, the user must participate, requiring thresholds exceeding network participants. With two-thirds consensus in permissionless networks, this becomes impossible. Web3 projects attempting permissionless MPC implement it in small node subsets vulnerable to collusion.
The 2PC-MPC Breakthroughs: Noncollusive, Decentralized and Scalable
2PC-MPC introduces a nested MPC structure where users and networks are always required (2PC — Two Party Computation), and the network part requires two-thirds consensus between hundreds or thousands of validators (MPC). This ensures noncollusion and prevents network asset theft while enabling autonomous, flexible permissionless structures.
"Blockchains expose reliable broadcast channels, challenging MPC integration requiring unicast communication. In 2PC-MPC, we replaced unicast with broadcast communication within network MPC, supporting hundreds or thousands of participants, while users face O(1) complexity." — Dolev Mutzari, VP of Research at dWallet Labs
Current Web3 MPC algorithms use unicast communication, limiting participants to single digits. Generating single ECDSA signatures takes minutes for 10-20 participants. Without signature batching support, 1,000 signatures require days. Hundreds of participants make even single signature generation impossible.
2PC-MPC moves to broadcast communication using batching, aggregation, and amortized decryption, allowing hundreds or thousands of participants to support massive signature requests per second from multiple users.
"Our dWallets and Ika Network vision upholds Bitcoin's decentralization and user ownership principles. This nested structure enables the Ika Network to be the first network empowering builders on L1s and L2s to manage assets across multi-chain Web3 in a decentralized, noncollusive manner." — Omer Sadika, CEO of dWallet Labs
