What Is a Multi-Party Computation (MPC) Wallet and How Does It Enhance Security?
An MPC wallet uses a cryptographic technique to split the private key into multiple shares, distributed among different parties or devices. No single party holds the entire private key, and multiple shares must be combined to authorize a transaction.
This eliminates the single point of failure inherent in traditional single-key wallets, significantly enhancing security against internal collusion or external hacking attempts.
Glossar
Computation
Derivation ⎊ Computation, within cryptocurrency, options trading, and financial derivatives, represents the algorithmic processes used to determine pricing models, risk assessments, and execution strategies; it’s fundamentally the translation of market data into actionable insights.
Mpc Wallet
Wallet ⎊ An MPC wallet utilizes multi-party computation cryptography to distribute the private key required to authorize a crypto transaction across several independent parties or devices.