How Does MPC Address the Risk of ‘Insider Collusion’ in a Custodial Setup?

MPC addresses insider collusion by distributing the authority to sign transactions across multiple, often siloed, parties or systems. To collude, the number of insiders must exceed the set signing threshold.

By ensuring the key shards are held by personnel in different departments or even different legal entities, the cost and complexity of collusion are significantly increased, making it a less viable attack vector.