Multiparty Computing (MPC) is an encryption protocol that allows many parties to measure their input function formulas together without leaking these typing to each other.

MPC is likely to be very useful when multiple parties need to measure some function formulas together, but want others to type without the knowledge of them. For example, a group of financial institutions is likely to need to know the total amount in his collaborative account without revealing his account balance to each other.

In MPC, each party has a secret typing, and they keep their information secret. This process is achieved by carefully encrypted typing and measuring the encrypted value, so that the final result is the required function formula, while ensuring the security of the coefficient.

The MPC agreement generally involves multiple communications between multiple parties, the exchange of encrypted information and the implementation of various calculations for one's own typing.

MPC is a complex technical theme style, and there are many combinations and methods to complete MPC contracts. Some important tests of the design MPC contract include ensuring that the agreement is secure against a variety of attacks, such as an intentional party trying to get another party to type, and that the agreement is useful at the cloud computing server and communication cost level.

What is a multi-party computing encrypted wallet?

Multi-party computing encrypted wallet is an encrypted wallet that applies MPC technology to securely work and store user assets. In MPC encrypted wallets, the private keys used to browse and manage users' cryptocurrency are divided into several parts, called "market share", which are distributed among the parties involved in the MPC agreement.

An important feature of using MPC in encrypted wallets is that it allows the user to quickly manage his encrypted money without requiring either party to browse all the private keys. This can help avoid a variety of attacks, such as cyber hackers trying to steal users' encrypted loans by leaking unilateral private key market share.

MPC encrypted wallet generally uses the combination of cryptographic algorithm and secure communication protocol, so that different types of multi-parties can manage the encrypted currency of the method user together. This process is likely to involve complex computational communications among multiple parties, but the result is a secure and efficient way to manage the cryptocurrency assets of method users.

Encrypted wallets like Zengo use multi-party computing to improve wallet security, and Coinbase activated this effect for his unmanaged wallet. As a result, MPC encrypted wallets can provide higher reliability and maintenance for some attacks. Even so, they need more cloud servers than other encrypted wallets.

Advantages and disadvantages of multi-party calculation of login password wallet

An important advantage of MPC encrypted wallets is that the private keys used to browse and manage cryptocurrency can be divided into several parts and distributed among multiple parties, which can provide a higher degree of security for users' cryptocurrency assets.

Tal Be'ery, co-founder and technical director of encrypted wallet Zengo, told Cointelegraph: "MPC has overcome the most urgent problem of encrypted money: server downtime of the private key (SPOF). This SPOF is an important reason for a user to damage his assets: whether his private key is misplaced, his private key is stolen, or his seed statement is unexpectedly shared by phishing scams. He continued:

In MPC, the indispensable private key is replaced by several distributed truths, which are generally called "market share", so that those market shares of members can sign the information in a distributed system without establishing the private key.

Everyone mentioned how to separate each part of the private key and store them in different places, making it difficult for hackers to destroy users' wallets.

"if the sharing is placed in an area perpendicular to each other (for example, mobile terminals and web servers), then network hackers will become more and more complex, because cyber attacks have to be stolen from individual areas in various ways," Be'ery said.

"this type of system architecture also overcomes the dilemma discussed above: it is much easier to set up a shared group as a backup to prevent data loss, since no shared means' and only 'private key," he added.

Parth Choudhary, founder and CEO of Glip, a Web3 and game wallet application, told Cointelegraph, "MPC can do this so that wallet service providers can't get or manipulate users' money." This may also make it difficult for cyber hackers and other villains to steal private keys.

MPC encrypted currency wallets have some advantages over ordinary wallets. The MPC wallet is more reliable because it ensures that users' property can still be browsed, even if one or more participants are increasingly unavailable or failed to initialize. Personal privacy has also been improved because the private key is divided into several shares and distributed among different parties.

According to preventing either party from finding the user's integrated private key, the opportunity for users to damage funds is reduced. Because the algorithm is carried out in the encrypted export, the security factor is also improved, thus avoiding the intentional party to obtain private information.

However, there are some hidden defects in using MPC to encrypt wallets. One of this drawbacks is the diversity associated with MPC protocols, especially for non-authoritative experts at the cryptographic algorithm level. Therefore, for most people, building a MPC wallet is likely to be more interesting.

In addition, because of the cloud computing servers required by the MPC agreement, they are likely to start slowly. At this point, MPC wallets are actually less efficient than other encrypted wallets. In the end, not all cryptocurrency assets can be managed with MPC encrypted wallets, and some assets are often difficult to apply MPC management or out of touch with reality.

Wallet security has always been critical for anyone who uses encrypted money, and self-hosting is becoming more and more important with the bankruptcy of several famous encrypted currency companies and the loss of millions of users' assets.

The decision to apply MPC to encrypt wallets will depend on the special needs and regulations of users. For example, if it is useful for users who prefer security and privacy, some people may prefer a more convenient solution.