# 2、Why Pallet wallet

**It’s time to upgrade to a more secure crypto wallet based on MPC technology; No recovery phrases to lose!**

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## What are “your keys”? <a href="#bdb6" id="bdb6"></a>

Similar to a bank account number, cryptocurrencies are sent to a receiving address. The technical term for this address is the *public key*. When someone sends you some Bitcoin, they will send it to your public key. It’s called public, since you can send it to anyone without compromising your crypto.

There is, however, another key that is linked to your public key. That would be the *private key*. This key is absolutely vital. Anyone that has access to the private key can access the funds on the public key that it’s linked to. In simpler terms a private key is similar to a password — a means of identifying you as the true owner.

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## Not your keys, not your coins <a href="#ab1f" id="ab1f"></a>

Afraid of losing your crypto? You’re not the only one. More than $100 billion worth of assets are either lost or stolen due to private key mismanagement.

If your crypto is stored in a wallet you don’t have the private keys for, like a wallet on an exchange, is it really yours? Many will say it isn’t.

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The most obvious risk of keeping your funds on an exchange is the risk of losing them in the event of a hack. As of this writing, there have been approximately 45 exchange hacks resulting in cumulative losses of about $1.85 billion. The most notorious was the [2014 hack of Bitcoin exchange, Mt.Gox](https://www.investopedia.com/terms/m/mt-gox.asp), which resulted in the theft of more than $660 million of users’ funds.

## Never lose control of the “your keys” <a href="#fb42" id="fb42"></a>

If you do own your keys, you have complete control over how to use your funds.

The philosophical reasons for keeping your coins in a wallet you control are straightforward. Cryptocurrency was created in response to a money and banking system that centralizes power away from the individual. With this in mind, handing over control of your funds to a third party definitely goes against the ethos that cryptocurrency was built on.

## The recovery phrases wallet has a single point of failure <a href="#id-002f" id="id-002f"></a>

Whether recovery phrases or cold wallets, there are hidden dangers of single point storage and single point signature. Once lost, assets will be completely lost! Lost and stolen recovery phrases, misplaced private keys, and CeFi exchanges hack all contribute to the estimated $100 billion dollars of crypto that has been lost forever.

Simple and secure tech is already being used at the institutional level — helping the custody of billions of dollars of crypto assets using MPC. With Pallet MPC Wallet, it’s time to upgrade your crypto and wallet security.

## What is MPC and how does it work? <a href="#bd4d" id="bd4d"></a>

MPC stands for Multi-Party Computation. Leveraging MPC, wallets can securely design an on-chain asset management system that makes recovery easier, while simultaneously increasing secure self-custody by removing the single point of failure of a private key.

## Pallet: Your Keys, Your Coins — Always Secure <a href="#a575" id="a575"></a>

Pallet is a safe, secure and decentralized Multi-Party Computation (MPC) digital wallet that does not require users’ personal and manual storage of corresponding private keys. Due to the overarching distributed key share architecture behind MPC wallets, common risks that are associated with insecure storage of private keys and a single signature verification point can be eliminated.

Users will have absolute and full ownership over their wallet and funds with 100% privacy guarantees, and trades can only be initiated by the users as Pallet does not hold custody of a user’s funds.
