In the more recent landscape of cryptography and cryptocurrency, there’s one phrase that seems to be becoming impossible to escape: Multi-Party Computation. Instead of a sea of hexadecimal codes and single input keys to cryptocurrency wallets, MPC is a new type of technology which is changing the landscape of cryptocurrency and digital asset business as we know it. But what actually is it, how does it work, and what are the benefits?
Multi-party computation runs by basic computer calculations on encrypted values, which is different to other methods of computation and cryptography. It enables a number of servers or inputs to simultaneously compute a certain function without needing to actually know the various inputs of the function.
For example, if a group wanted to work out the average household bills of the group, they would be able to do so using multiparty computation without actually having to reveal their individual household bills to each other. The MPC technology would enable them to complete the equation without ever needing to know the inputs of other members of the group.
MPC has historically been seen as a privacy-preserving version of computational technology due to its ability to maintain the secrecy of these inputs, as the locations of the inputs can also be kept secret. It is highly secure because of this, and is particularly useful for digital asset businesses managing large cryptocurrency portfolios.
How Does MPC Work?
Multi-Party Computation works by multiple computers completing calculations based on their own, unique fragments of data from a much larger data set, and as a collective they produce the intended outcome of accessing a wallet or locating cryptocurrency without any individual computer knowing the entire ‘answer’ or key. This is a highly secure way of storing and mining cryptocurrency as it means no one computer is ever responsible for accessing an entire asset collection, and for this reason MPC crypto is some of the most secure out there.
The theory behind Multi-Party Computation technology has been around for almost half a century, but it has only made a real appearance in the cryptocurrency arena more recently as companies began to take notice of its superior security capabilities over basic blockchain hexadecimal wallets.
So there you have it – the mysterious Multi-Party Computation explained. MPC provides a high level of security, and is a highly scalable method of digital asset growth. This technology will only become more commonplace as the industry of cryptocurrency develops.