The Bitkey team, a Bitcoin wallet developed by Block, announced on November 4th the introduction of chaincode delegation technology (Chaincode delegation). This innovation aims to provide users with greater privacy in managing their multi-signature wallets (multisig).
Jack Dorsey, co-founder and former CEO of Twitter (X) and creator of Block, said Bitkey was “the first wallet.” multisig Private collaboration.
Bitkey missing Hybrid method It is a combination of a hardware wallet (one of your keys is stored on your physical device), a mobile application (which stores another key), and a Bitkey server (which acts as your backup or recovery key).
In this “2 of 3” multi-signature model, two out of three keys are sufficient to authorize a transaction.
At the same time, in this collaboration design, Third parties participate in the recovery process. In Bitkey’s case, that third party is the company itself, which it works with for mobile signatures and account recovery via encrypted servers managed by Block.
This participation does not give Bitkey direct access to users’ funds, but it does mean it has some influence. Revealing confidential informationsuch as metadata linked to transactions and address derivation.
technology Chaincode delegation We try to reduce that risk. With this update, users retain their chain code (chain cord), a cryptographic element used to generate derived addresses within the same wallet.
Doing so allows the federated server to sign transactions. Without knowing the user’s balance, address or previous movements.
The server receives only the information strictly necessary to process each operation. During the recovery process, a pool of UTXOs (unused output, or usable Bitcoin fragments) is temporarily shared.
Bitkey said in a statement that it guarantees that it does not store or record this data and is preparing verification tools that allow users to autonomously verify that their information is not retained.
Finally, the Bitkey update is “expected to be implemented in the coming weeks,” according to what was published.
Chaincode delegation is a public Bitcoin Improvement Proposal (BIP) that can be reviewed by anyone in the repository. It was developed by Jurvis Tan, a Bitcoiner collaborator who also works at Block.
They say Bitkey is the first wallet to integrate this BIP and encourage other wallets to adopt it.