Wirex Wallet vs. Hardware Wallet – Experience Superior Security

Region: Europe
Jun 23, 2023, 2:43:01 PM Published By Wirex Team
  • Discover the superior security features of Wirex Wallet compared to traditional hardware wallets 
  • Learn about multi-factor authentication, guaranteed recovery, and the power of MPC technology 

As a cryptocurrency enthusiast, you understand the importance of security in managing your digital assets. Enter the Wirex Wallet, our innovative non-custodial wallet that offers a more secure and superior alternative for crypto self-custody compared to traditional hardware wallets such as Ledger. 

The issue with hardware wallets 

Hardware wallets, while popular, have a significant flaw: the recovery of private keys. The private key, which fully controls a user's crypto assets, must be recoverable in case the wallet is lost or damaged. Unfortunately, the seed phrase solution often touted by hardware wallet providers is not foolproof. In fact, some hardware wallet providers are creating a wallet recovery subscription service at a monthly cost (Ledger Recover requires KYC and costs $9.99/month), highlighting the inherent issue with their software controlling the private key. Similarly, Ledger’s authentication is single factor by default, using just a seed phrase. 

How does the Wirex Wallet differ? 

At Wirex Wallet, we've designed our system with these issues in mind: 

We believe that any system with a single point of failure is, by default, less secure than a multi-factor system. That's why we've committed to building multi-factor authentication (email and biometrics), that is more robust by default, and we offer this for free to our user base. This ensures that only you can recover your wallet, as it is tied to your unique biometric signature. 

We've solved the recovery issue since our inception and provide a free guaranteed recovery solution that has been working flawlessly for more than four years. Wirex Wallet's recovery does not require KYC and all you need is your email and to pass the biometrics. Moreover, our recovery is mandatory, ensuring that you can always recover your funds if you lose your phone 

While every system has its limitations, it is worth highlighting Wirex Wallet's track record. Since we launched, not a single Wirex Wallet has been hacked or taken over. We believe that a system that is secure by-default (a system with no single point of failure like a seed phrase) is the right solution for long-term self-custody. 

The Power of MPC Technology 

Multi-Party-Computation (MPC) technology has been used at the institutional level for years, and Wirex Wallet is proud use this architecture with no seed phrase vulnerability for our consumer wallet. This technology offers an order of magnitude more security than traditional hardware wallets like Ledger that rely on a seed phrase to interface with the blockchain. This singular vulnerability has led to seed phrase phishing, theft, and wallet misplacement.  

In contrast, our MPC technology eliminates the single point of failure inherent in hardware wallets by distributing the control of assets across multiple parties. This means that even if one party is compromised, your assets remain secure. 

Instead of the traditional seed phrase, Wirex Wallet is powered by two independently created “secret shares.” One share (your Personal Share) is created and stored on your mobile device. The second share (your Remote Share) is created and secured on Wirex’s servers. Every time you initialise a transaction from your wallet, the two secret shares securely compute to create a signed transaction which interfaces with the blockchain. 

Your Next Steps 

We hope this comparison has helped clarify why Wirex Wallet is the superior choice for crypto self custody. If you have any questions or need assistance, our dedicated customer service team is here to help, 24/7. 

To learn more about Wirex Wallet and our use of MPC technology, please visit our website. We're here to answer any questions you may have and look forward to helping you secure your digital assets.