# Secure Multiparty Computation ⎊ Area ⎊ Resource 2

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## What is the Privacy of Secure Multiparty Computation?

Secure Multiparty Computation (SMPC) is a cryptographic technique that allows multiple parties to jointly compute a function over their private inputs without revealing those inputs to each other. This method enhances data privacy in decentralized finance by enabling calculations on sensitive data, such as trade positions or collateral values, without exposing individual inputs.

## What is the Computation of Secure Multiparty Computation?

SMPC facilitates complex calculations for derivatives pricing and risk management while preserving confidentiality. The protocol allows for collaborative computation of a result, ensuring data integrity while maintaining privacy. This approach reduces the risk of front-running and data exploitation in decentralized trading environments.

## What is the Protocol of Secure Multiparty Computation?

SMPC can be integrated into decentralized derivatives protocols to create trustless and private trading environments. By using SMPC, protocols can calculate margin requirements or execute trades based on private information without revealing individual positions to other market participants. This technology addresses privacy concerns inherent in public blockchain ledgers.


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## [Order Flow Privacy](https://term.greeks.live/term/order-flow-privacy/)

## [Data Security Protocols](https://term.greeks.live/term/data-security-protocols/)

---

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**Original URL:** https://term.greeks.live/area/secure-multiparty-computation/resource/2/
