Multi-Party Computation: Enhancing Blockchain Security
Multi-Party Computation (MPC) is a cryptographic mechanism that distributes computational operations between multiple parties, without any of the subjects being able to see the other parties’ data.
What is Multi-Party Computation?
Multi-Party Computation(MPC) is a cryptographic mechanism that distributes computational operations between multiple parties, with none of the subjects being able to see the other parties’ data.
MPC is an area of blockchain research with a specific implementation limited to maintaining the privacy of the parties in the system, where all participants can arrive at a mutually desirable outcome without having to disclose the personal or private data of anyone involved in the transactions or operations.
MPC technology is based on the well-known blockchain concept known as additive secret sharing, which is essentially sharing a secret and distributing it among a group of independent, willing participants.
The same applies to cryptography and public key encryption. In DeFi, public keys can be shared and managed by multiple parties, thereby increasing security. MPC technology allows cryptographic keys to be shared, whereby the owner of one key fragment cannot access the encrypted database without all other key owners being present.
Multiple asset owners can validate digital asset transactions by creating a digital signature using private keys. Transactions usually become valid only when all parties in the MPC group are legitimate. The MPC solution then distributes the created signature(s) to multiple members of the ecosystem, thereby securing the transaction.