HOT Protocol

HOT Protocol is a network of validators for MPC Wallets. Nowadays, the transition in the approach to creating crypto wallets is increasingly changing. Seed phrases are being replaced by MPC wallets. Such wallets are no less secure, but they can work over a password or fingerprint, and you can set up 2FA and restore access to your account.

Introduction to HOT Protocol

HOT Protocol is a validator network and an innovative decentralized protocol for creating crypto wallets. HOT utilizes Multi-Party Computation (MPC) technology. MPC Protocol divides the private key into multiple parts and distributes them to different locations (validators) to increase security. This technology avoids loss of assets in the event of a leaked user seed phrase and adds many unique features, not available in standard wallets.

HOT Protocol is built on top of NEAR Chain Abstraction technology, and is compatible with Bitcoin, all EVM networks (Ethereum, Base, Polygon, Arbirtrum...), Solana, and so on.

How HOT Protocol works

In a HOT Protocol system, validators play a key role in the transaction signing process. A user's transaction request is sent to the entire network of validators. Each validator signs all requests with its part of the private key, saved on his node. The collected parts of the signature are then put together to form the final signature of the transaction.

A validator is a special node in the network that verifies and validates transactions.

It is important to note that the process of collecting the signature parts and forming the final signature is done without disclosing the private key parts to each other by the validators to each other. This guarantees security and confidentiality. In addition, the use of a distributed scheme for storing keys and signatures provides resistance to attacks and increases the reliability of the transaction signing process.

The key role is played by HOT, which is now being mined by users on Telegram. HOT is needed to sign transactions. Users can stake HOT and use it to pay transaction fees. After each transaction, a part of the HOT is sent to validators and the other part is burned. More information about the HOT utility will be described in the next article.

HOT Protocol Features

HOT Protocol provides a unique opportunity to add new functionality to wallets, built on top of it. Flexible two-factor authentication (2FA) provides an additional level of security, preventing hacking of wallets even if the seed phrase is leaked.

With HOT Protocol, accounts and their history become full-fledged assets. HOT allows you to transfer access to an account with locked tokens or future airdrops. In addition, registration of a non-custodial wallet can be done not only by seed phrase, but also by other web services familiar to users (email or fingerprint). At the same time, all the principles of decentralization and security are preserved.

In addition, HOT Protocol provides a convenient mechanism for managing the gas (network fee). Gas is required to execute transactions on the blockchain and it can be paid for either in HOT or other tokens.

Such innovations make HOT Protocol the leading solution for secure storage of cryptocurrency assets. Many major exchanges (such as OKX, Binance and Bybit) are also developing their MPC protocols. However, HOT Protocol stands out for its decentralization, giving users full control and more security.

New opportunities for apps

The addition of HOT Protocol support opens up new opportunities for various services and games that previously stored users' private keys on their servers. Now they can shift the responsibility for security to HOT Protocol. At the same time, each user has full control over their account and assets. This means that even if a service or game becomes unavailable, users can always regain access to their funds, thanks to the unique features of HOT Protocol.

Conclusion

HOT Protocol provides unique opportunities to create a variety of features and services that will change the landscape of crypto wallets. Using these technologies you can implement innovative ideas, including flexible settings security, automated financial transactions and personalized user interfaces. And the huge audience that already exists will bring mass to the mass adoption of HOT Protocol.