willcole on Nostr: As you evaluate bitcoin security solutions, be wary of MPC custodians selling their ...

As you evaluate bitcoin security solutions, be wary of MPC custodians selling their solution as equivalent to multisig. MPC is not native to bitcoin, and is often implemented at an operational abstraction on top of a single signature. IE: funds are secured by a single private key, but that private key is essentially sharded in a way that requires multiple people/signatures to create the bitcoin private key signature to move funds. It SOUNDS like multisig but it’s not. If there were an entropy mistake like Coldcard’s in how that single seed was created, MPC is not helping.

There are perfectly reasonable ways a custodian would use MPC with multisig, but it is not a replacement. The goal is to eliminate single points of failure.