How Does MPC Facilitate the Secure Recovery of a Lost Key Share?
MPC facilitates secure recovery through a process called 're-sharing' or 'key refresh.' Since the private key is never fully reconstructed, the loss of one share does not compromise the entire system. The remaining key shareholders can collaborate to securely generate a new set of shares, including a replacement for the lost one, without ever exposing the master key.
This recovery process is performed cryptographically in a distributed manner.