Multi-Party Computation (MPC)

Multi-Party Computation (MPC) is a subfield of cryptography that allows multiple parties to jointly compute a function over their inputs while keeping those inputs private. In the context of digital assets, it allows a group of users or servers to sign a transaction without any single party ever knowing the full private key.

This is a powerful alternative to traditional multi-signature wallets, as it is often more flexible and does not require on-chain transaction complexity. MPC protocols are highly secure because the "key" effectively never exists in one piece.

However, the implementation of MPC is mathematically complex and requires robust networking and synchronization between the participating nodes. It is rapidly gaining adoption in institutional custody due to its superior security and flexibility.