What is multi-party computation?

Multi-Party Computation (MPC) is a cryptographic technique that allows multiple parties (such as organizations, devices, or applications) to collaborate and compute a result or process data without revealing their individual inputs to each other. Each participant only knows their own data and, through the use of cryptographic protocols, the computation can be performed securely without any party accessing the private data of others. When developing an MPC protocol, there are two key security considerations:

• Correctness: Ensuring that the protocol produces the correct output based on the given inputs.
• Privacy: Ensuring that no participant can learn anything beyond the final output, protecting the confidentiality of each party’s data

MPC is often used in scenarios where data confidentiality and privacy are crucial. One of its key applications is in securing digital wallets, where it enhances security by splitting the private key into multiple shares distributed across different parties or systems.