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.