Unbound Tech Introduces Upgrades to its Multi-Party Computation Platform For Cryptocurrency Exchanges and Custodians

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Thu, 02/27/2020 - 18:20
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Vladislav Sopov
All-in-one B2B solutions for cross-chain crypto exchange platforms has become a highly competitive sphere. Unbound Tech has a horse in the race and is betting on security
Unbound Tech Introduces Upgrades to its Multi-Party Computation Platform For Cryptocurrency Exchanges and Custodians
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The Unbound Tech development team has announced a system-level update of its Crypto Asset Security Platform (CASP). Here’s what they upgraded.

More parties, more security

Secure multi-party computation (SMPC) is one of the exciting ‘killer features’ of cryptography advancements. After tens of years of academic research, it is now utilized via Unbound Tech’s Crypto Asset Security Platform (CASP) to protect private keys and transactions within the framework of the exchange and custodian process.

This feature is designed for any kind of digital asset exchange or custody platform. It is intended to replace the outdated ‘hybrid’ approach to keys and value security that combines multi-signature wallets with Hardware Security Modules (HSMs).

CASP mibile interface
Image via Unbound Tech

Besides security issues, the new construction bootstraps the operational efficiency of its users, both custodies and exchanges. This milestone has been achieved without sacrificing the level of security of Hardware Security Modules while eliminating the need for physical hardware devices. That’s why it is also named “virtual HSM”.

Create your own approval and signing policies

Unbound Tech also built a framework that offers its clients the ability to customize the CASP toolkit. To start with, numerous authorization policies for different currencies, including Bitcoin (BTC), Ethereum (ETH) and any ERC-20 tokens, are available. 

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Exchanges being hacked and their users funds’ being stolen is no stranger to the industry. Only recently Altsbit exchange was hacked for over $70 million, and in 2019 there were 12 different breaches. 

Unbound’s CASP might become the long-wanted solution to prevent the hacks described above. The solution is open for integration with existing HSM solutions, and even allows for designated bots to take part in the approval policies. It is also being used by Liquid exchange, according to the official website, and by digital asset custody provider Archax. Lastly, it has earned the first U.S. Federal Information Processing Standard (FIPS) Level 2 certification from the National Institute for Standards and Technology.

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It is still early to determine whether CASP or similar solutions will become the standard for digital asset custody solutions or not. Whether it does make it or not, it shows the importance of maintaining security while being able to operate efficiently simultaneously. This trade-off has played a big barrier of entry to the industry and on adoption, and dealing with it is crucial for the industry’s future.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)