How Does MPC Differ from Multi-Signature (Multi-Sig) Wallets?

Both MPC and multi-sig wallets require multiple authorizations to sign a transaction, but they work differently. Multi-sig creates an on-chain transaction that requires multiple distinct signatures from different private keys.

This is visible on the blockchain. MPC, on the other hand, uses off-chain computation to have multiple parties jointly create a single signature from a key that was never fully combined.

The resulting transaction looks like a standard single-signature transaction on the blockchain, which can offer better privacy and lower fees.