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XRP How chain signatures work
The chain signature feature of the NEAR protocol allows a single NEAR account (including smart contracts) to sign and execute transactions on an external blockchain without relying on traditional bridges or separately deploying contracts. The mechanism is based on a decentralized multi-party computing (MPC) network: private keys are not stored on a single machine, but are distributed among multiple independent nodes. Each node generates a key fragment, which combines to form a valid joint signature. No single node can access the complete signature key, eliminating the risk of centralized custody-the root cause of repeated attacks on traditional cross-chain bridges.
Each target chain gets a unique address, which is deterministically derived from the NEAR account combined with the path string. Transaction requests are processed through a signed contract, which receives the transaction payload, derivation path, and required signature scheme. Because different paths generate different keys, a signature generated for one chain cannot be replayed to authorize transactions on another chain. This isolation is enforced at the cryptographic level, not just a tactical constraint.
Broader chain support and practical significance
NEAR chain signing currently supports signing for Bitcoin, Solana, Cosmos, XRP, Aptos, Sui and a range of EVM-compatible networks (including Ethereum, BNB Chain, Avalanche, Polygon, and Arbitrum). The MPC network is guaranteed by NEAR pledge and also utilizes Eigenlayer's ETH re-pledge.
For developers, the actual benefits are very significant. One NEAR account can manage interactions on multiple blockchains, without users having to hold native Gas tokens on each target chain. The companion feature "Multi-Chain Gas Repeater" allows users to pay for transaction fees using NEAR or NEP-141 tokens, regardless of the target network. For DeFi builders, chain signatures open the door to blockchains that have traditionally lacked smart contract capabilities, such as Bitcoin and Dogecoin, allowing them to implement more complex financial logic without having to package assets or introduce counterparty risks associated with bridging.
This method also significantly reduces the attack surface compared to the lock-in-stock bridge design. In locked coin bridges, holding a single contract with locked assets becomes a concentrated point of failure.
