MPCSecurityNon-Custodial

Here's How We Actually Keep Your Exchange 100% Non-Custodial

Discover how BROlabel delivers 100% non-custodial security with Distributed Key Generation and MPC. Real security done right — the full key never exists anywhere.

BL
BroLabel Team
April 14, 2023
Here's How We Actually Keep Your Exchange 100% Non-Custodial

At BROlabel, we prioritize non-custodial solutions to enhance user control and security. Here's exactly how our MPC (Multi-Party Computation) security works in BROlabel's white-label platform.

BROlabel MPC non-custodial security diagram

How It Works: Distributed Key Generation

When a user creates a wallet, we don't generate one full private key.

Instead, we split it into two pieces right away (Distributed Key Generation):

  • One piece stays with us (locked in HashiCorp Vault)
  • The other piece is created and stored only on the user's device

The complete key never exists anywhere. Ever.

Sending Crypto: Step by Step

When someone wants to send crypto:

  1. The user signs their part of the transaction on their phone/laptop (they see everything in the app)
  2. We check all the rules first (2FA, AML, limits, four-eyes approval, etc.)
  3. Then we sign our part
  4. Special MPC engine combines both pieces → transaction is valid and sent to blockchain

But the full key? Still never put back together.

What If Something Goes Wrong?

Hackers get our servers? They can't move funds without the user's piece.

User loses phone? They have an encrypted backup of their share (we recommend 2-of-3 setup).

Our infrastructure fails? We keep our side safe with Vault replication + disaster recovery.

The Security Model at a Glance

ScenarioTraditional CustodyBROlabel MPC
Server breachFunds at riskSafe — attacker has only 1 shard
User loses deviceFunds at riskSafe — encrypted backup, recovery flow
Insider threatFunds at riskSafe — no single party can sign alone
Platform owner abusePossibleImpossible — owner can't sign without user

Bottom Line

Nobody — not us, not hackers, not even you as the platform owner — can touch funds alone. That's real non-custodial done right.

This is the exact security we give to every exchange built on BROlabel — and why serious projects choose us.

The key insight: your exchange can offer the security guarantees of a self-custody wallet with the user experience of a centralized platform. Users don't need to manage seed phrases. You don't hold their keys. Everyone wins.

Want to see this in action for your own platform? Talk to our team — happy to walk you through a demo.