Recently, discussions about MPC wallets in the crypto community have been heating up. Many people confuse them with multi-signature wallets, but the operational logic of these two is actually quite different. Today, we'll break it down and clarify how MPC wallets protect your digital assets.
What is Multi-Party Computation (MPC)?
Multi-Party Computation (MPC) or Secure Multi-Party Computation (SMPC) sounds complicated, but it’s actually a method where a group of people compute a result together without revealing their individual secrets to each other.
Here's a practical example: Suppose a Web3 startup has three employees who want to know the average salary but don’t want to disclose their individual earnings. Using an MPC protocol, they can calculate the average in complete secrecy, and no one will know who earns what.
The principle behind this technology is called "additive secret sharing," which disperses the secret among multiple parties. Even if someone tries to cheat or act dishonestly, MPC can prevent it.