Wallets serve as the foundational infrastructure of the blockchain, safeguarding user assets and acting as the primary entry point to Web3. However, despite industry advancements, users still grapple with the burden of managing long private keys and seed phrases. Losing these can result in permanent asset loss—a significant barrier to mass Web3 adoption.
Moreover, with the expansion of on-chain ecosystems and the surge in transaction activities, securing private keys and seed phrases has become increasingly challenging. High-profile thefts involving millions of dollars due to leaked credentials highlight these vulnerabilities.
In response, keyless wallets have emerged as a breakthrough solution. Leveraging Multi-Party Computation (MPC) technology combined with blockchain signatures, these wallets eliminate the need for users to manage private keys or seed phrases.
What Is a Keyless Wallet?
Multi-Party Computation (MPC) is a cryptographic security technique that enables multiple parties to collaboratively compute data without exposing any individual’s private information. Using Distributed Key Generation (DKG), private key shards are created independently. No single party or machine holds the complete private key. To sign a transaction, multiple participants must jointly compute, resulting in a valid signature.
Keyless wallets built on MPC technology, such as OKX’s implementation, replace a single private key with three independently generated shards. These shards are stored separately, and only two are required to authorize transactions. Crucially, the full private key is never assembled during this process.
When creating a keyless wallet:
- The OKX server generates private key shard 1.
- The user’s device generates shard 2 and shard 3.
- Shard 2 is encrypted and stored locally on the user’s device.
- Shard 3 is encrypted and backed up to iCloud or Google Drive.
During transaction signing, shard 1 and shard 2 are used. Shard 3 serves as a secure backup. Users are still required to back up their wallet—but instead of seed phrases, they securely store the third shard via a cloud service. This allows recovery from any location or device while minimizing the risk of asset loss. The entire setup process takes just seconds, offering a seamless, key-free experience.
Advantages of Keyless Wallets
- No Private Key Management, Eliminating Single Points of Failure
With key shards distributed across multiple parties, no single device holds the complete private key. Even if one shard is compromised, it’s useless on its own, providing robust protection against theft. - Smooth User Experience and Lower Entry Barrier
Memorizing seed phrases or safeguarding private keys has long been a hurdle for new Web3 users. Keyless wallets preserve the core Web3 principle of self-custody while delivering a user-friendly experience reminiscent of Web2 applications. - Lower Recovery Costs
If a shard is lost or stolen, keyless wallets support shard refreshment. New shards can replace compromised ones, effectively “revoking” access from lost credentials without changing the wallet address.
How to Set Up a Keyless Wallet
- Download and open the OKX App.
For first-time Web3 wallet users:
- Navigate to the Web3 wallet section and select "I don’t have a wallet" → "Keyless Wallet."
- Enable Face ID authentication when prompted.
- Enter your OKX exchange account credentials (if not already logged in).
- Tap "Create."
- Select "Back Up Wallet" → "Confirm."
- Set a password to complete the backup.
For existing wallet users:
- Open your Web3 wallet and go to "Wallet Management" → "Add Wallet."
- Choose "Create New Wallet" → "OKX Account."
- Enter your OKX credentials (skip if logged in) and tap "Create."
- Back up the wallet using your preferred method and confirm with a password.
How to Recover a Keyless Wallet
If you reset your wallet, delete the app, or switch devices, recovery is straightforward:
- Open the OKX App, go to the Web3 wallet, and choose "I have a wallet" → "Keyless Wallet."
- Enable Face ID access.
- Enter your OKX account details (if needed) and select "Scan to Recover."
- Use your old device to scan the QR code. Once synchronized, your wallet is restored.
If the old device is unavailable or a shard is compromised, use cloud recovery:
- Follow steps 1–3 above, but choose "Recover via Cloud."
- Select iCloud or Google Drive and enter your cloud backup password.
- Complete the recovery process.
Note: Cloud recovery resets all shards, rendering the old wallet inactive. You must restore the wallet on the new device to regain access.
👉 Explore secure wallet recovery methods
Frequently Asked Questions
Is it safe to use a wallet without a private key?
While unconventional, keyless wallets enhance security by ensuring the full private key never exists in one place. This design mitigates risks associated with traditional private key storage.
Can I import OKX’s keyless wallet to another app?
Currently, no. Due to the lack of industry-wide MPC standards and native institutional support, keyless wallets are often custom-built. However, you can reconstruct the full private key from shards 2 and 3—converting it into a traditional wallet for use elsewhere. Note: This voids the original keyless wallet.
What happens if OKX becomes unavailable?
Your assets remain secure. With shards stored on OKX’s server, your device, and the cloud, you can reconstruct the private key using shards 2 and 3 independently. This allows you to recover your wallet and transfer assets without relying on OKX.
What should I do if my local shard is leaked?
Initiate cloud recovery via iCloud or Google Drive. After successful recovery, all shards are reset, securing your wallet without affecting your address or assets.
Are keyless wallets centralized?
No. OKX’s keyless wallet is non-custodial and decentralized. OKX acts solely as a service provider—it cannot access user assets. Even if the platform is compromised, users can recover their wallets independently using their shards. The design also reduces privacy risks by eliminating centralized key storage.
👉 Learn more about non-custodial wallet security
Keyless wallets represent a significant evolution in crypto storage, combining robust security with effortless usability. As the industry moves toward broader adoption, solutions that prioritize both safety and accessibility will play a pivotal role in shaping the future of Web3.