The rise of decentralized finance and Web3 applications has brought new demands for secure, user-friendly cryptocurrency wallets. One innovative solution gaining traction is the Keyless Wallet, a next-generation self-custody wallet powered by Multi-Party Computation (MPC) technology. This guide dives deep into everything you need to know about Keyless Wallets—how they work, their security model, setup process, and best practices for asset protection.
Whether you're new to Web3 or an experienced user, understanding the mechanics behind Keyless Wallets can help you navigate dApps with greater confidence and safety.
👉 Discover how MPC-powered wallets are redefining crypto security and ease of use.
What Is a Keyless Wallet?
A Keyless Wallet—also known as an MPC Wallet—is a type of cryptocurrency wallet that eliminates the need to manage traditional private keys. Instead, it uses advanced cryptographic methods to split the private key into multiple parts, or key-shares, distributed across secure environments.
This wallet is created directly through your Bybit account and leverages Multi-Party Computation (MPC) to ensure that no single entity ever holds the full private key. As a result, users enjoy enhanced security without sacrificing control over their digital assets.
Unlike conventional wallets where losing your seed phrase means losing access forever, Keyless Wallets offer a more resilient recovery system—while still maintaining the principle of self-custody.
Key Advantages of Using a Keyless Wallet
Why choose a Keyless Wallet over traditional alternatives? Here are the main benefits:
🔐 No Need to Memorize Seed Phrases
Thanks to MPC technology, there’s no 12- or 24-word recovery phrase to remember. Your key is securely split and stored, removing one of the biggest pain points in crypto ownership.
🛡️ Superior Security Through Distributed Keys
Private keys are never fully assembled during transactions. This means hackers cannot steal a complete key, even if they compromise one part of the system.
🧩 Full Self-Custody with Built-in Redundancy
You retain full ownership of your assets. One key-share is stored on your personal cloud drive (iCloud, Google Drive, or Dropbox), encrypted with a recovery password you set—ensuring only you can restore access.
Keyless Wallet vs. Bybit Wallet: Understanding the Differences
While both wallets are accessible through your Bybit account, they differ significantly in custody model and functionality.
| Feature | Keyless Wallet | Bybit Wallet (Custodial) |
|---|---|---|
| Custody Type | Self-custody | Custodial (managed by Bybit) |
| Private Key Control | User controls key-shares | Bybit holds private keys |
| Backup Required | Yes – cloud backup with recovery password | No manual backup needed |
| Access Across Platforms | Created via app; used on web via WalletConnect | Available on both app and website |
| Supported Activities | dApp interactions, swaps; upcoming support for IDO/Staking | Full access to IDO, Staking, and Web3 features |
| Security Model | MPC + 3FA + TEE environment | Standard custodial security |
💡 Note: You can have both a Keyless Wallet and a Bybit Wallet under the same account.
👉 Learn how MPC wallets combine convenience with enterprise-grade security.
How to Set Up and Use Your Keyless Wallet
Creating a Keyless Wallet is straightforward—but requires attention to detail for long-term security.
✅ Prerequisites
- Latest version of the Bybit mobile app
- Active Bybit account
- Cloud storage account (iCloud, Google Drive, or Dropbox)
📱 Creation Process
- Open the Bybit app
- Go to the Web3 section
- Select “Create Keyless Wallet”
- Follow prompts to generate your wallet
- Back up your encrypted key-share to your preferred cloud drive
Once backed up, your wallet is ready for use.
Can I Use It on Desktop or Just Mobile?
You can create and manage your Keyless Wallet only through the Bybit mobile app. However, once set up, you can connect it to dApps on desktop using WalletConnect, enabling seamless interaction with decentralized platforms like DeFi protocols, NFT marketplaces, and gaming ecosystems.
This hybrid approach gives you the best of both worlds: mobile-first security with web-based flexibility.
How Many Keyless Wallets Can I Have?
Each Bybit account supports only one Keyless Wallet at a time. If deleted, you can restore it using your backup—but you cannot create a second one.
Do I Need to Back Up My Keyless Wallet?
Yes—backup is mandatory before sending or receiving funds.
During setup, your private key is split into two shares:
- Share 1: Held securely by Bybit
- Share 2: Encrypted and saved to your personal cloud drive
To restore access later, you’ll need:
- Your Bybit account
- The backup file from your cloud
- Your recovery password
🔒 This triple-layer requirement is known as 3FA Recovery—a robust safeguard against unauthorized access.
What Happens If I Lose My Device?
No problem—if you’ve completed the backup.
To restore:
- Reinstall the Bybit app
- Log in to your account
- Navigate to Web3 > Import Keyless Wallet
- Select your cloud provider and upload the backup file
- Enter your recovery password
Your wallet will be fully restored with all assets intact.
What Security Measures Protect My Assets?
The Keyless Wallet employs multiple layers of protection:
🔑 Multi-Party Computation (MPC)
Ensures private keys are never whole—only fragments exist across locations.
🧱 Trusted Execution Environment (TEE)
Both user devices and servers sign transactions within isolated, tamper-proof environments (e.g., Secure Enclave on iOS, AWS Nitro Enclave).
🔐 3FA Transaction Protection
Every transaction requires:
- Access to your Bybit account
- Correct wallet password
- Authentication from your registered mobile device
Device changes trigger mandatory wallet restoration, blocking unauthorized usage.
Frequently Asked Questions (FAQ)
Q: Can I export my private key or seed phrase?
No. The Keyless Wallet does not generate a seed phrase or allow private key export. Security relies on MPC sharding—not user-managed keys.
Q: What if I forget my recovery password?
If you’ve lost your device and deleted the Bybit app, you will lose access permanently. However, if the app remains installed, you can still send funds normally.
Q: Which cloud services are supported?
- iOS: iCloud, Google Drive, Dropbox
- Android: Google Drive, Dropbox
Back up to multiple drives for redundancy.
Q: Can I use the same password for wallet and recovery?
Technically yes—but for maximum security, use different passwords for your wallet login and recovery.
Q: Is identity verification required?
No KYC is needed to create or use a Keyless Wallet.
Q: Can I restore a deleted wallet?
Yes—as long as you have the cloud backup file and remember your recovery password.
Best Practices for Securing Your Keyless Wallet
- Never delete the backup file labeled “DO NOT DELETE Bybit Wallet Backup” in your cloud.
- Store your recovery password offline—use a password manager or physical note.
- Avoid logging into your Bybit account on public devices.
- Enable two-factor authentication (2FA) on your Bybit account.
- Perform regular test restores to confirm backup integrity.
👉 See how modern crypto wallets make self-custody safer than ever before.
Final Thoughts
The Keyless Wallet represents a major leap forward in making Web3 accessible without compromising security. By combining MPC technology, cloud-based backups, and multi-factor authentication, it removes the complexity of traditional key management while preserving full user control.
As decentralized applications continue to evolve, tools like the Keyless Wallet will play a crucial role in helping users interact safely and confidently with the blockchain ecosystem.
Remember: with great power comes great responsibility. While Bybit provides the infrastructure, you are ultimately responsible for safeguarding your recovery password and backup file. Treat them like digital gold—because that’s exactly what they protect.