Multi-Party Computation (MPC) is a cryptographic mechanism that distributes computing operations among several parties, where no single entity can see the other party's data.
The use of Multi-Party Computation is generally carried out by data scientists to carry out joint analysis of data without having to share it. MPC is a research field in the blockchain realm with a special implementation that aims to maintain the privacy of the parties in a system.
In MPC, all participants are able to achieve mutually desired results, without the need to disclose personal or confidential data during transactions or operations.
Use of Multi-Party Computation Technology in the World of Business and Blockchain
Although it has several use cases, the MPC mechanism is most effectively used in scenarios where stakeholders in a company want to calculate their average salary without having to disclose personal salary information to each other or to a trusted third party during the calculation process.
MPC technology leverages a well-established concept in blockchain, known as additive secret sharing. It is the process of sharing secrets and distributing them among a group of willing independent participants.
In the context of DeFi, Multi-Party Computation technology can also be applied to cryptographic public keys and encryption. Public keys can be divided into multiple parts and managed by multiple parties, increasing the level of security.
MPC enables cryptographic key sharing, where the holder of a single key fragment cannot access an encrypted database without the presence of all other key holders.
Multiple key holders in an MPC can validate digital asset transactions by each creating a digital signature via a private key. A transaction is only considered valid when all parties in the Multi-Party Computation group are valid.
Afterward, MPC will distribute the generated signatures among multiple members in the ecosystem, ensuring transaction security.
Thus, Multi-Party Computation not only involves the innovative field of cryptography but also provides a reliable solution to maintain data privacy in a blockchain environment.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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