Enhance your Digital Wallet offerings using Multi-Party Computation: A better way of preserving digital identities

In April 2024, the EU introduced a regulation mandating that each member state implement a secure digital identity wallet by 2026. This wallet, accessible to all EU citizens, will enable seamless compatibility with electronic identification systems across borders.

The aim? To create a transparent, unified, and trusted digital landscape where citizens can access and manage their personal information securely and efficiently.

With the stakes this high, Multi-Party computation (MPC) offers an ideal solution for enhancing the security of digital wallets. Unlike traditional security protocols that rely on centralized access points vulnerable to attacks, MPC distributes the process of data encryption and access verification across multiple independent parties.

This way, no single party can access the entire dataset, reducing vulnerability to breaches and enabling a zero-trust security model. By integrating MPC into digital wallet systems, companies and individuals can ensure that private information remains private - even in the face of advanced cyber threats.

For organizations developing or upgrading digital wallet solutions, leveraging MPC can provide a competitive edge. It aligns with the EU’s mission of protecting citizen data and establishing digital transparency while delivering an additional layer of security against unauthorized access. Investing in MPC technology positions companies to lead in the new era of digital identity management, where privacy and trust aren’t just regulatory demands, it's customer expectations.

As the EU continues to set the global standard for data privacy and cybersecurity, adopting MPC will not only be a technical upgrade, it will also become a strategic necessity.

With the growing reliance on digital wallets for everyday transactions, both corporate clients and private users are actively seeking providers who demonstrate unwavering commitment to privacy, data integrity, and user trust.

As a wallet provider, are you prepared to meet the growing expectations from companies and individuals who are trusting you with their data?

By leveraging a blockchain network, digital wallet providers that are using MPC can further enhance data privacy and security, as user authentication and data verification occur in a transparent, tamper-proof environment.

Explore in depth the relevant use cases and discover how Partisia can support you in meeting the unique challenges and demands of being a trusted wallet provider.

1. Advanced credential issuance and verification using Multi-Party Computation (MPC)

Partisia’s Multi-Party Computation (MPC) technology allows wallet providers to securely issue and verify credentials without exposing any sensitive data. This is achieved by secret-sharing the necessary data for advanced issuance or verification across an MPC cluster, where secure calculations are performed.

Let's imagine an insurance company needs to verify health data to offer an insurance policy. By using MPC technology, the insurance company and healthcare provider can confirm the necessary information without directly sharing private data (the data is processed through the MPC cluster). This ensures that sensitive details, like medical records, remain secure while still allowing the verification to take place.

2. Privacy-preserving computations across multiple entities (for instance, AML in the finance industry)

To the best of our knowledge, wallet providers often work with external institutions (e.g., banks or healthcare services) for identity checks and verifications. MPC enables these parties to securely collaborate by processing data without exposing it, ensuring privacy and security. This is particularly useful for confirming credentials, such as financial information (e.g., Anti-Money Laundering checks) or health status, without any party directly accessing the other’s private data.

3. Secure data storage for sensitive information (such as biometric data)

MPC can also be used to store very sensitive data, such as biometric information. Rather than storing all the sensitive data in one place, MPC splits it across multiple locations (nodes), ensuring that no single party holds the complete information. This approach greatly reduces the risk of data breaches, while still allowing secure access to the data when needed.

4. Confidential computing for privacy-preserving analytics

Partisia’s Confidential Computing (CC) platform enables wallet providers to offer customers a system to analyze data generated from wallet interactions while keeping user information private. Partisia can assist with integrating the wallet and relevant systems to securely collect data from multiple sources.

Once the data have been collected from the different parties involved, encrypted calculations can be performed through Partisia’s Confidential Computing platform, which runs on MPC technology. The result is a comprehensive final report that provides valuable insights while maintaining the privacy and security of the underlying data.

5. MPC-based backup and recovery of sensitive data

Partisia’s Multi-Party Computation (MPC) technology can also provide a secure, privacy-preserving solution for backing up and recovering sensitive wallet data, including Verifiable Credentials (VCs) and private keys. By leveraging MPC, this backup process can be achieved without exposing or centralizing any sensitive information.

In the event of a lost or compromised device, users can securely recover their credentials through an MPC-enabled restoration process. This ensures that DID/wallet providers can offer a seamless, secure recovery solution while upholding data privacy and resilience against breaches, enhancing user trust and safeguarding digital identities.

1. Private deployment of our blockchain for decentralized identifiers

Partisia offers the option to deploy its blockchain privately, allowing wallet providers to manage decentralized identifiers within their own secure environment. This ensures full control over how digital identities are created, verified, and managed.

A private deployment provides the same tamper-proof, decentralized infrastructure as the public Partisia Blockchain, but with greater flexibility for customization and data control. This solution also addresses the challenge of credential revocation.

2. Tamper-proof audit powered by blockchain

Partisia’s blockchain technology ensures that all changes made to public keys within the Verifiable Data Registry are recorded immutably. This creates a verifiable, tamper-proof audit log, providing an extra layer of security and transparency to the ecosystem.

Are you ready to rise to this challenge and set a new standard in digital security?