How Do Multi-Party Computation (MPC) Solutions Enhance the Security of Institutional Crypto Custody?

MPC is a cryptographic technique that allows multiple parties to jointly compute a function (like signing a transaction) without any single party revealing their private input (a share of the private key). This eliminates the single point of failure associated with traditional private key storage.

The private key is never fully reconstructed, as transaction signing is done through a distributed, secure process. This makes the system highly resistant to insider threats and external hacks.