Multi-Party Computation

November 21, 2023 - Around 2 mins mins to read

Understanding Multi-Party Computation

Multi-Party Computation (MPC) is a cryptographic technique that distributes computation operations among multiple parties, ensuring that no single entity can access the data of other parties. This mechanism is commonly used by data scientists to perform joint data analysis without sharing the actual data.

MPC is a research area within the blockchain sphere, specifically focused on preserving the privacy of participants within a system. It enables all participants to achieve a desired result without disclosing personal or private data during transactions or operations.

One of the main applications of MPC is the calculation of the average salary within a company without revealing individual salary information to other stakeholders or a trusted third party. The technology behind MPC is based on additive secret sharing, a concept derived from blockchain, where a secret is divided and distributed among independent participants.

A similar approach is employed in public key cryptography and encryption. In decentralized finance (DeFi), public keys can be divided and managed by multiple parties to enhance security. MPC technology allows for the division of cryptographic keys, ensuring that no single key fragment holder can access the encrypted database without the presence of all other key holders.

In the context of digital asset transactions, multiple holders can validate transactions by creating digital signatures using their private keys. The validity of a transaction depends on the legitimacy of all parties within the MPC group. The generated signature(s) are then distributed among multiple members in the ecosystem, ensuring the security of the transaction.