What Is Multi-Party Computation (MPC) and How Does It Improve Security?
Multi-party computation (MPC) is a cryptographic technology that allows multiple parties to jointly compute a function over their inputs while keeping those inputs private. In the context of crypto custody, MPC is used to create and sign transactions without ever forming a complete private key in a single location.
The key is split into multiple shares, distributed among different parties or devices. This significantly enhances security by eliminating a single point of failure; a hacker would need to compromise multiple shares simultaneously to gain control of the funds.
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
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.
MPC Technology
Threshold ⎊ MPC Technology, within the context of cryptocurrency derivatives, options trading, and financial derivatives, fundamentally addresses the challenge of secure key management in decentralized environments.