COCA, a crypto wallet provider, has just announced the rollout of its physical debit cards, bringing us one step closer to widespread crypto adoption. The cards, issued in partnership with Wirex, will be available in over 50 countries, allowing users to conveniently pay for everyday shopping with crypto, all in an ultra-secure way.
The company, founded and headed by Pavel Matveev, a UK-based blockchain entrepreneur with long-term experience in finance and trading, spearheads the new approach to real-life crypto transactions by implementing the multi-party computation (MPC) mechanism into physical crypto debit cards.
What is multi-party computation, and how is it related to crypto wallets?
MPC is a robust cryptographic technique that allows multiple parties to compute a function together without revealing their inputs to each other. In crypto, it's used alongside public-key cryptography to collaboratively sign transactions.
Unlike traditional single-key wallets, MPC wallets distribute key management among multiple participants. As a result, transactions require collective approval, enhancing security by eliminating single points of failure. This approach aligns perfectly with the general blockchain idea of decentralization, preventing any single entity from taking control of user assets.
What's the difference between MPC and multisig wallets?
Security concerns in crypto wallets have already been addressed by multisig wallets. The concept emerged in the early days of Bitcoin and relies on two or more users signing transactions as a group. In other words, a multisig wallet uses multiple private keys to manage cryptocurrencies.
The rules for accessing the crypto wallet in this model are determined by smart contracts. Multisig wallets enable multi-factor authentication and provide extra security when multiple parties in a company, DAO, or elsewhere manage one wallet.
MPC is a relatively new invention that deals away with the classical approach to a single private key – a basic and potentially insufficient security measure. Instead, MPC relies on splitting a private key – required for accessing and managing crypto assets – into multiple parts called "shares," which are then distributed among several parties involved in the MPC protocol. In the MPC setting, no single party has complete control over the wallet.
To make things simpler but still super secure, transactions are authorized by attaining a required threshold of shares, rather than all of them. This eliminates single points of failure, enhances wallet security and availability, while keeping the process convenient for the user.
COCA's physical debit cards' key features
COCA is the first company combining a wallet platform with a non-custodial debit card to leverage multi-party computation cryptography. In February this year, the firm launched COCA Virtual Cards in the APAC region, allowing crypto users from Asia and Pacific areas to make online purchases and in-app payments at any vendor accepting MasterCard without having to convert crypto to fiat first.
With the launch of the physical card, the company is stepping up the game, offering even more convenience and hard-to-match security. Key features of COCA physical debit cards include:
- non-custodial security based on multi-party computation and anonymous biometrics,
- global accessibility,
- usability anywhere traditional Visa/Mastercard debit cards are accepted both online and in-store,
- compatibility with mobile wallets, including Apple Pay and Google Pay,
- cashback rewards, simplified transitions between fiat and crypto, and versatile off-ramping options to transfer funds to bank accounts or other cards.
You can use COCA cards like a regular debit card in your wallet – for everyday shopping, bill payments, apartment bookings, and even withdrawing cash without incurring excessive foreign transaction costs. COCA offers card users up to $200 in feeless ATM withdrawals globally, similar to multi-currency card providers, such as Revolut.
No KYC crypto exchange
Exchanging crypto without the KYC hassle is always a challenge. COCA advertises as a no-KYC wallet, allowing users to enjoy "best crypto rates, fee-free swaps, easy NFT and dApp access" without undergoing privacy-revealing procedures. The COCA card is connected to the no-KYC wallet, allowing you to pay with crypto converted in real time to fiat money appropriate for your residence. However, COCA physical crypto cards are not KYC-free.
According to the blog post, a user intending to order a COCA card has come out of the shade into the "regulatory light." The COCA cards and their features are provided in cooperation with the company's licensed e-money institutions in the UK and EU, which are subject to KYC and AML regulations. As a result, COCA cannot guarantee crypto card users freedom from KYC nuisance.
Users can order a card straight from their COCA wallet. Unfortunately, you need to provide personal details, including name and address – which is pretty obvious since the company needs to know where to deliver the physical product. However, if you're scheming to provide your grandmother's contact details, you're bound to be disappointed. The app requires a selfie of you, and then insolently demands that you provide your ID or passport. So, that's about it regarding privacy when making real-life payments with crypto.
Still, if you can handle KYC, the card offers convenience for those eager to start spending cryptocurrency in everyday situations rather than hodling them infinitely.
Learn more about crypto debit cards: https://coinpaper.com/4627/crypto-debit-cards-the-future-of-digital-payments and no KYC crypto exchanges: https://coinpaper.com/3756/crypto-exchanges-without-kyc-how-to-find-a-privacy-friendly-cryptocurrency-exchange.
