Crypto Terms:
Letter M
What is Multi-Party Computation (MPC)?
Meaning:
Multi-Party Computation (MPC) -
is a research method that allows for maintaining data anonymity.
Let's find out Multi-Party Computation (MPC) meaning, definition in crypto, what is Multi-Party Computation (MPC), and all other detailed facts.
Multi-Party Computation (MPC) is a research method within cryptography that allows to compile the data of multiple parties and compute it while maintaining the anonymity of each participant’s data.
MPCs allow conducting joint analysis of specific data and keeping said data unknown.
When it comes to the crypto sector, MPC is applied in the blockchain as a means to maintain each participant’s personal and sensitive data hidden while successfully completing the transaction.
Let’s have a look at an example. When stakeholders want to be aware of the average salary within the company, MPC is one of the most optimal methods to calculate it. By using multi-party computation, the company will preserve the private salary of each party.
MPC makes use of the additive secret sharing method - dividing a specific secret into shares and then distributing these shares to a group of participants.
MPCs are also utilized within the public key cryptography and encryption.
For instance, DeFi enables multiple parties to distribute and manage fragments of a public key. It’s a way of adding another layer of security.
When it comes to the MPC method, the mentioned keys are also divided. However, every key fragment must be present in order to be granted access.
Cryptocurrency transactions can be verified by each party generating a digital signature by utilizing private keys. Once it’s established that each party of the MPC group is legitimate, every participant would be granted one of the generated signatures thus guaranteeing that the operation is secure.
dApps and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-defi/">DeFi protocols<\/strong> have emerged across several blockchain networks. Despite the fact that layer-2 solutions are geared at addressing interoperability and capacity issues, blockchain's privacy concerns have gone unanswered.<\/p>\n<p>To address this issue while maintaining the key tenets of blockchain technology, next-generation projects began investigating the notion of multi-party computation. This is in order to offer further levels of anonymity to data used in services on blockchain networks. <\/p>\n<p>Because <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-multi-party-computation-mpc/">multi-party computing<\/strong> <strong>(MPC)<\/strong><\/a> divides calculation activities over several parties, where no entity is able to view the data of the other parties, it assures end-to-end data security.<\/p>\n<p>Nevertheless, multi-party computation (MPC) can provide unrivaled degrees of anonymity as a stand-alone option. To make it useful for the blockchain environment, MPC must be combined with the intrinsic advantages of blockchain technology. <\/p>\n<p>The best approach to preserve security and still support dApps and DeFi protocols is to make sure that blockchain technology's openness, consensus, and integrity are correctly employed to coordinate MPC without sacrificing privacy. <\/p>\n<p>Presently, only a few firms have effectively combined MPC and blockchain technology, bringing the desired qualities of both environments to customers and service providers simultaneously.<\/p>\n<p>Also, creating an MPC solution from the bottom up, on the other hand, takes time, energy, and resources. As a result, MPC-as-a-service has arisen as a novel alternative for businesses seeking end-to-end protection for their blockchain services. <strong>Consider it similar to the typical software-as-a-service (SaaS) paradigm, in which anybody may rent the services by making a payment to the service provider. <\/strong><\/p>\n<p>The MPC-as-a-Service concept allows organizations and individuals to grow their activities as required by allowing them to select from a variety of pay-as-you-go approaches.<\/p>","definition":"is a business model where customers are able to rent MPC nodes from a service provider instead of buying them or building them from scratch.","status":"published","meta_title":"What is Multi-Party Computation as-a-Service? Definition & Meaning | Crypto Wiki","meta_description":"Multi-Party Computation as-a-Service meaning: Multi-Party Computation as-a-Service - is a business model where customers are able to rent MPC nodes from a service provider instead of buying them or building them from scratch.","meta_keywords":null}"
:prev-section="{"id":530,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_wallet","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-09-12T15:16:10.000000Z","slug":"what-is-multi-coin-wallet","title":"What is Multi-Coin Wallet?","section":"M","keyword":"Multi-Coin Wallet","content":"<p><strong>Crypto wallets are very important for users if they wish to keep their assets off of exchanges in a safe manner.<\/strong><\/p>\n<p>For individuals who are new to the crypto sector, certain wallets can store a single crypto asset or a group of only a few crypto assets running on a single blockchain network. For example, many <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallets presently only support currencies or tokens that operate on the <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum network.<\/p>\n<p>As a result, these cannot be considered real multi-coin wallets. A multi-coin wallet (also known as a multi-chain wallet) is essential for people who want to spread their assets that reside on several blockchain technologies.<\/p>\n<p><strong>AtomicDex<\/strong> is an illustration of a multi-coin wallet, with the extra advantage of possessing a built-in decentralized exchange that provides blockchain interoperability.<\/p>\n<p>Moreover, a multi-coin wallet is, like the name implies, a wallet that can hold more than one cryptocurrency. Using a single wallet to hold a user's currencies simplifies trading on decentralized exchanges and gives an easy method to stay on top of their whole portfolio.<\/p>\n<p><strong>The ability to keep hundreds of thousands of crypto assets in one place and gain passive rewards by <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-staking/">staking or even gaining active rewards are some of the extra benefits of a multi-coin wallet.<\/strong><\/p>\n<p>These also have integrations that allow users to directly engage with several <strong><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-defi/">DeFi protocols.<\/strong><\/p>","definition":"A multi-coin or multi-chain wallet is one that allows users to store several crypto assets from different blockchain networks.","status":"published","meta_title":"What is Multi-Coin Wallet? Definition & Meaning | Crypto Wiki","meta_description":"Multi-Coin Wallet meaning: Multi-Coin Wallet - A multi-coin or multi-chain wallet is one that allows users to store several crypto assets from different blockchain networks.","meta_keywords":null}"
:model="{"id":550,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Secure_multi-party_computation","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-11-22T18:44:23.000000Z","slug":"what-is-multi-party-computation-mpc","title":"What is Multi-Party Computation (MPC)?","section":"M","keyword":"Multi-Party Computation (MPC)","content":"<p><strong>Multi-Party Computation<\/strong> (MPC) is a research method within <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptography/">cryptography that allows to compile the data of multiple parties and compute it while <strong>maintaining the anonymity of each participant’s data<\/strong>.<\/p>\n<p>MPCs allow conducting joint analysis of specific data and keeping said data unknown.<\/p>\n<p>When it comes to the crypto sector, MPC is applied in the blockchain as a means to maintain each participant’s personal and sensitive data hidden while successfully completing the transaction.<\/p>\n<p>Let’s have a look at an example. When stakeholders want to be aware of the average salary within the company, MPC is one of the most optimal methods to calculate it. By using multi-party computation, the company will preserve the private salary of each party.<\/p>\n<p>MPC makes use of the additive secret sharing method - dividing a specific secret into shares and then distributing these shares to a group of participants. <\/p>\n<p>MPCs are also utilized within the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-public-key/">public key<\/strong><\/a> cryptography and encryption.<\/p>\n<p>For instance, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-defi/">DeFi enables multiple parties to distribute and manage fragments of a public key. It’s a way of adding another layer of security.<\/p>\n<p>When it comes to the MPC method, the mentioned keys are also divided. However, every key fragment must be present in order to be granted access. <\/p>\n<p>Cryptocurrency transactions can be verified by each party generating a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-digital-signature/">digital signature<\/strong><\/a> by utilizing <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private keys<\/strong><\/strong><\/a>. Once it’s established that each party of the MPC group is legitimate, every participant would be granted one of the generated signatures thus guaranteeing that the operation is secure.<\/p>","definition":"is a research method that allows for maintaining data anonymity.","status":"published","meta_title":"What is Multi-Party Computation (MPC)? Definition & Meaning | Crypto Wiki","meta_description":"Multi-Party Computation (MPC) meaning: Multi-Party Computation (MPC) - is a research method that allows for maintaining data anonymity.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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current-chapter="M"
current-section="what-is-multi-party-computation-mpc">
