Nash has announced the launch of its decentralized API keys based on secure multi-party computation (MPC). The implementation will provide institutional and algorithmic traders with flexible permission control over individual API keys, limiting parameters such as trade quantities, withdrawals, or asset types.
The new API keys represent another technological advancement for Nash, enabling configurable trading API access similar to traditional setups in centralized exchanges, but without the security risks innate to custodial platforms.
“Institutions employ many individual traders who interact with exchanges through APIs. Each trader is given only partial access to the institution’s master account. No individual trader should be able to drain the institution’s wallet, make trades over a certain value or withdraw to an unknown address.”
Nash’s API keys provide an alternative way to provide valid signatures on blockchain transactions. Rather than using the full private keys, MPC is used to generate two keys; one for the API user, and one held by Nash. Each can be used to generate a pre-signature, which must be combined in order to sign transactions.
If the API key holder makes an action that is permitted by the master account holder, Nash will provide its pre-signature, authorizing the transactions. If the API user’s key has been limited—prevented from withdrawing to an unknown address for example—then Nash will not provide the pre-signature, preventing asset loss from occurring.
The team also noted its intention to use its MPC-based APIs to improve its user wallet system, replacing private key signatures with its API to allow custom withdrawal limits to be set. In the event that a user’s Nash account is compromised, these limits would restrict the quantity of assets that can be stolen in a given timeframe.
Additionally, according to a Nash Community post by co-founder Fabio C. Canesin, the MPC system also includes support for Bitcoin trading, with markets expected to launch as soon as next week:
“This system contains Bitcoin trading, but no BTC markets were started. We will first enable API keys so people can migrate their infrastructure. The current plan is to start BTC markets next week if no blockers appear.”
The full decentralized API keys announcement can be found at the link below: