If you’re running a crypto business and receiving thousands of Ether deposits day in and day out, you know that ETH address management can lead to high costs and operational headaches.
While many businesses are currently using multi-sig technology to secure Ether wallets, other wallet alternatives (such as MPC) offer numerous advantages. Did you know that MPC can save you over 90% on Ethereum fees in comparison to multi-sig?
Multi-sig vs. MPC for ETH transaction management
Multi-sig generates Ethereum addresses on-chain, but MPC allows you to create them off-chain. That reduces wallet creation, deposit address creation, and transaction costs. For example, based on April 2021 ETH gas fees, customer deposit address creation costs $64 less with MPC.
Unlike multi-sig wallet technology, MPC is blockchain agnostic and is native to Ethereum. That means the cost of scaling a retail-facing business with MPC is significantly lower for Ethereum wallet creation, deposit address creation, and token transfers.
Looking to calculate exactly how much your business can save by switching from multi-sig to MPC? Try out the Fireblocks ETH cost savings calculator.
Frequently Asked Questions
How does Fireblocks calculate Ether transaction fee cost savings?
We calculate the savings based on deposit address creation costs (row 2 above) and external deposit and withdrawal costs (row 3 above). You can save even more if you also consider the total costs in the above table!
Will MPC slow down my operation because it’s off-chain?
MPC wallets will actually improve operational speed because they’re automated and off-chain, so they won’t be affected when Ethereum is experiencing congestion or delays in confirmation times.
Aren’t there two gas fees for Ethereum deposits? One for the initial deposit, then one more to sweep the funds into an omnibus account?
MPC reduces both fees. Based on April 2021 gas prices, the first deposit is $10.64 less (see 3rd row in the table), and the second deposit is $4.79 less (see 4th row in the table).
Is there a limit on how many free addresses we can create?
MPC address generation is free and unlimited, regardless of how many addresses your operation needs to support.
