How Does MPC Differ from a Traditional Multi-Signature (Multi-Sig) Scheme?
Traditional multi-sig requires multiple complete private keys to be generated and stored separately, and then brought together to sign a transaction on the blockchain. MPC, however, never creates a single, complete private key.
Instead, it creates multiple key shares, and the signing process is a distributed computation where the shares are used to sign the transaction without ever being reconstructed. MPC eliminates the single point of failure inherent in the storage of even one full key.
Glossar
Single Point of Failure
Concentration ⎊ In crypto derivatives, this risk materializes when excessive collateral or governance control resides with a small number of entities, such as a few large liquidity providers or key developers.
Mpc
Architecture ⎊ This abbreviation typically refers to Multi-Party Computation, a cryptographic technique enabling multiple parties to jointly compute a function over their private inputs without revealing those inputs to each other.
Distributed Computation
Execution ⎊ Distributed Computation involves partitioning a complex financial or cryptographic task into smaller segments that are processed concurrently across a network of independent computing resources.