Multi-party computation (MPC) is a cryptographic mechanism that distributes computation operations across several parties where no singular entity can see the other parties’ data.
Multi-party computation (MPC) is a cryptographic mechanism that
distributes computation operations across several parties where no singular entity can see the other parties’ data.
Data scientists often use MPCs to perform a joint analysis of data without ever sharing them.
MPC is a research area in the
blockchain sphere with a specific implementation restricted to preserving the privacy of parties within a system, where all participants are capable to arrive at a mutually desired result without the need for any participants in transactions or operations to disclose personal or private data.
Despite having several use cases, an MPC mechanism is best utilized in scenarios where stakeholders within a company seek to calculate their average salary without ever divulging their private salary information to each other or a trusted third party during the computation process. The technology behind MPC leverages a well-established concept within the blockchain known as additive secret sharing, which is basically the division of a secret and its distribution among a group of independent, willing participants.
The same goes for public keys cryptography and encryption. Within DeFi,
public keys can be divided into multiple pieces and be managed by multiple parties, thereby enhancing security. MPC technology allows for cryptographic keys to be divided, where no single key fragment holder can access the encrypted database without the presence of all other key holders.
Multiple holders can validate digital asset transactions by each creating a
digital signature via
private keys. In general, transactions only become valid when all parties of the MPC group are legitimate. After which, the MPC solution would distribute generated signature(s) among multiple members in the ecosystem, thereby, ensuring the safety of the
transaction.