HOT Protocol
We are excited to announce the launch of HOT Protocol, an open protocol for creating decentralized MPC wallets.
What is MPC wallet
MPC wallet is a type of cryptocurrency wallet that divides the private key into multiple parts and stores them in different locations for increased security. Usually access to such servers is controlled centrally, such as Coinbase, Binance, OKX or ByBit. In HOT Protocol, the key is stored with a large number of independent validators and the ownership of the wallet is stored in a smart contract. This makes the protocol open and guarantees the owner access to the MPC wallet.
By working on top of NEAR Chain Abstraction, such nodes are resistant to attacks. The disclosure of one or more keys of individual nodes does not carry risks for wallets created on top of the protocol. Also, new nodes can connect to sign transactions thanks to key sharing, allowing the protocol to be even more decentralized.
HOT will be staked by validators as collateral for their participation in transaction signing, also users and projects will burn HOT when making transactions on wallets on top of the HOT Protocol. This economy will make the HOT Protocol sustainable and independent.
HOT Wallet is a wallet created on top of HOT Protocol. Unlike regular wallets, its seed phrase is stored distributed in a network of validators. This allows you to give limited access to your account, transfer ownership of wallets, replace the seed phrase, customize 2FA and more. HOT is an open protocol, such wallets can be used through any compatible crypto wallet. For example, HERE Wallet and HOT Cli.
NEAR Chain Abstraction
NEAR Chain Abstraction is a set of tools that allow you to create open MPC networks. The main problem that NEAR Chain Abstraction solves is decentralized key storage and fail-safe access to transaction signatures. Using NEAR blockchain and ECDSA cryptographic algorithms as a basis, the highest level of security and stability of the system is achieved.
Non-custodial wallet
A wallet created on top of a protocol is still just as a non-custodial wallet, and only the user has control over their funds.
A non-custodial wallet is a wallet where the user has full control over the security of their cryptocurrency assets.
What problems does HOT Protocol solve
Seed Phrase Replacement. Accounts created on top of HOT Protocol can have their seed phrases changed. This not only increases the security of such wallets, but also gives access to transfer accounts with their reputation and locked tokens.
2FA. Thanks to the flexible access system, you can set up 2FA via SMS or mail to sign transactions. At the same time, 2FA can always be waived after waiting a few days. If your seed phrase has been compromised, you will always have time to react and replace it.
Cross-chain gas. With HOT Relay you will be able to perform transactions on any network and pay for gas in HOT.
Also HOT is a universal SDK for third party developers. Any project can create non-custodial and secure wallets for users. This enables seamless onboarding of web2 users. Users can change the seed phrase if they want and use them as normal wallets.