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.