
Blockchain
Multiparty computation could offer increased protection for crypto wallets – Crypto News
Multiparty computation (MPC) is a type of cryptographic protocol that allows multiple parties to jointly compute a function over their inputs without revealing those inputs to each other.
MPC can be useful when parties want to compute some function together but want to keep their inputs private from others. For example, a group of banks may want to determine the total amount of money in their joint account without revealing their account balances to each other.
In MPC, each party has a secret input that they keep to themselves. The process is done by carefully encrypting the inputs and performing the computation on the encrypted values so that the final result is the desired function, all the while keeping the values secure.
MPC protocols typically involve multiple rounds of communication between parties exchanging encrypted messages and performing various computations on their own inputs.
MPC is a complex and technical topic, and there are many variations and approaches to implementing MPC protocols. Some key challenges in designing MPC protocols include ensuring that the protocol is secure against various attacks, such as malicious parties trying to learn other parties’ inputs, and ensuring that the protocol is efficient with regard to computational resources and communication costs.
What is a multiparty computation crypto wallet?
A multiparty computation crypto wallet is a crypto wallet that uses MPC technology to manage and store users’ assets securely. In an MPC crypto wallet, the private keys used to access and manage the users’ cryptocurrency are split into multiple parts, known as “shares,” which are distributed among the parties involved in the MPC protocol.
The key advantage of using MPC in a crypto wallet is that it allows the users to securely manage their cryptocurrency without any single party having access to the entire private key. This can help protect against various attacks, such as hackers attempting to steal users’ cryptocurrency by compromising a single party’s private key share.
Recent: Remote work could redefine the global workforce for good
MPC crypto wallets typically use a combination of cryptography and secure communication protocols to enable different parties to jointly manage users’ cryptocurrency. The process can involve complex calculations and communication between the parties, but the result is a secure and efficient way to manage users’ cryptocurrency assets.
Crypto wallets like ZenGo use multiparty computation to improve wallet security, and Coinbase has the feature enabled for their noncustodial wallet. As a result, MPC crypto wallets can provide increased security and protection against certain attacks. Still, they also require more computational resources than other crypto wallets.
Benefits and drawbacks of multiparty computation crypto wallets
The main advantage of an MPC crypto wallet is that it can provide increased security for users’ cryptocurrency assets by splitting the private keys used to access and manage the cryptocurrency into multiple parts and distributing those parts among different parties.
Tal Be’ery, co-founder and chief technology officer at crypto wallet ZenGo, told Cointelegraph, “MPC solves cryptocurrency’s most pressing problem: The single point of failure (SPOF) of the private key. This SPOF is the main reason users lose their funds: Whether by misplacing their private key, having their private key stolen, or accidentally sharing their seed phrase through a phishing scam.” He continued:
“With MPC, the indivisible private key is replaced by multiple distributed secrets often called ‘shares,’ such that a quorum of these shares can distributively sign a message — without creating a private key.”
Be’ery mentioned how separating the pieces of the private key and storing them in different locations makes it more difficult for malicious actors to compromise a user’s wallet.
“If each of these shares is held in an orthogonal place (eg, mobile device and a server), then it makes it orders of magnitude more complicated for hackers to steal, as the attacker would need to steal from multiple independent places in different ways Be’ery said.
“This type of architecture also solves the dilemma discussed above: Creating copies of shares as a backup against loss is much easier, as no one share represents the ‘the and only’ private key,” he added.
Parth Choudhary, founder and CEO of Glip — a Web3 gaming and wallet application — also told Cointelegraph, “MPC could make it so that a wallet provider can’t get to a user’s money or control it. It may also make it harder for hackers and other bad people to steal private keys.”
MPC cryptocurrency wallets have some advantages over traditional wallets. MPC wallets are more reliable since they can ensure that a user’s assets are still accessible, even if one or more parties become unavailable or unresponsive. Privacy is also improved because the private keys are split into multiple shares and distributed among different parties.
By preventing any single party from discovering the user’s complete private key, the user has a reduced chance of losing their funds. Security is also improved since the computations are carried out on encrypted outputs, preventing malicious parties from learning sensitive information.
However, there are also some potential disadvantages to using an MPC crypto wallet. One of these disadvantages is the complexity associated with MPC protocols, especially for non-experts in cryptography. So, an MPC wallet can be more challenging to set up for the average person.
Recent: Crypto layoffs mount as exchanges continue to be ravaged by the prevailing bear market
Additionally, due to the computational resources needed by MPC protocols, they may be slower to operate. In this regard, an MPC wallet may be less efficient than other crypto wallets. Finally, not all cryptocurrency assets can be managed using an MPC crypto wallet, and some assets may be difficult or impractical to manage using MPC.
Wallet security has always been important for anyone who uses cryptocurrency, and the need for self-custody has become all the more apparent with the collapse of several high profile cryptocurrency firms and the loss of millions in user funds.
The decision to use an MPC crypto wallet will depend on the specific needs and requirements of the user. For example, it may be useful for users who prioritize security and privacy, but some people may prefer a more simple solution.
-
Blockchain1 week ago
Bitcoin Enters ‘Optimism Stage’—Is a Massive Rally About to Begin? – Crypto News
-
Metaverse1 week ago
Mint AI Summit 2025: How enterprises are using AI – Crypto News
-
Blockchain1 week ago
Bitcoin Enters ‘Optimism Stage’—Is a Massive Rally About to Begin? – Crypto News
-
Blockchain2 days ago
Stablecoins Pull Away From Crypto – Crypto News
-
Metaverse1 week ago
AI democratization crucial for India’s global leadership, say experts at Mint AI Summit 2025 – Crypto News
-
Cryptocurrency1 week ago
Ripple Grants $50 Million to Nonprofit Aiming to Raise US Crypto Awareness – Crypto News
-
Cryptocurrency3 days ago
MOVE price hikes 7% in 24 hours, 33% up from weekly lows – What next? – Crypto News
-
Cryptocurrency1 week ago
Moonbirds, Reddit Founders Resurrect Social News Site Digg—With an AI Twist – Crypto News
-
others1 week ago
Chainlink Price Jumps Past $15 As Whale Accumulation Signals Strength – Crypto News
-
Cryptocurrency1 week ago
134K Solana unstaked and listed for sale: Decoding SOL’s road ahead – Crypto News
-
Technology3 days ago
Truemarkets Officially Launches as Prediction Market with $TRUE – Crypto News
-
Technology1 week ago
Dogecoin Price Eyes Rally As Wallet Addresses Reach All Time High – Crypto News
-
Cryptocurrency1 week ago
US crypto reserve clarification coming? Wait til Friday. – Crypto News
-
Cryptocurrency1 week ago
Ethereum’s large purchase: Potential rebound or investor trick? – Crypto News
-
Technology1 week ago
Elon Musk’s Grok AI goes rogue once again, calls US President Donald Trump a Russian asset – Crypto News
-
Technology1 week ago
Nothing Phone 3a Pro launched at ₹29,999: Here is how it fares among 5 peers – Crypto News
-
Cryptocurrency1 week ago
This Ripple Metric Explodes by Over 600% in a Week: XRP Price Pump Incoming? – Crypto News
-
Technology1 week ago
Arbitrum Price Rally 14% as Robinhood Listing Fuels Market Optimism – Crypto News
-
others1 week ago
No surprises expected at the ECB meeting – Crypto News
-
others1 week ago
Veteran Trader Believes Bitcoin Low Is In, Says Downside Volatility Presenting Bullish Opportunities – Crypto News
-
Blockchain1 week ago
Ethereum price ‘double top’ hints at 42% drop as ETH bull market ends – Crypto News
-
others1 week ago
Dow Jones bounces as tariff threats give way to concessions – Crypto News
-
others1 week ago
Price increases ahead of tariffs could spell trouble for inflation – Crypto News
-
others1 week ago
US Government Blacklists Slew of Bitcoin and Monero Addresses Linked to Man Accused of Running Darknet Marketplace – Crypto News
-
Cryptocurrency1 week ago
Bitcoin, Ethereum Rally as Markets Weigh Trade Tensions and China’s Stimulus Push – Crypto News
-
Technology4 days ago
Wayve Reportedly Ready to Roll Out Self-Driving Tech – Crypto News
-
Cryptocurrency3 days ago
BC.GAME Team Compete for Top Prizes as BC.GAME ESPORTS Expands Its Line-Up – Crypto News
-
Technology1 week ago
Best refrigerators under ₹20000 in March 2025: Top budget friendly, feature packed picks for budget conscious buyers – Crypto News
-
Cryptocurrency1 week ago
PI Network hits major milestone as $PI & XRP whales move to new AI agent launchpad on Ripple – Crypto News
-
Cryptocurrency1 week ago
US Sanctions Iranian Operator of Nemesis Darknet Marketplace – Crypto News
-
Technology1 week ago
Analyst Predicts Ethereum Price Rally to $4K As Devs Fix Pectra Testnet Bug – Crypto News
-
Blockchain1 week ago
Bitcoin Price Suffers Bearish Deviation After Filling CME Gap, Is This Good Or Bad? – Crypto News
-
Cryptocurrency1 week ago
Tariff fears wipe out SOL’s weekend gains – Crypto News
-
Cryptocurrency1 week ago
US Senate Votes to Repeal IRS DeFi Reporting Rule – Crypto News
-
Technology1 week ago
Mt Gox Moves $1B BTC To Unknown Wallet As Bitcoin Price Hits $92K – Crypto News
-
Cryptocurrency1 week ago
What’s the strike price on Trump’s put? – Crypto News
-
Cryptocurrency1 week ago
Exclusive: Seismic raises $7M in round led by a16z Crypto – Crypto News
-
Technology1 week ago
Apple MacBook Air (2025) now available at a MASSIVE ₹10,000 discount: Bank offers, sale and more – Crypto News
-
Blockchain5 days ago
XRP Price Chart Signals Trouble – Is A Drop To $1.20 Possible? – Crypto News
-
Technology5 days ago
Beware the dangers of data – Crypto News
-
Cryptocurrency5 days ago
How Freepik Transformed From a Stock Image Platform Into a Generative AI Powerhouse – Crypto News
-
Technology5 days ago
Mint Primer: AI in the air: How gadgets will change forever – Crypto News
-
Technology4 days ago
Industry 5.0, AI and India: Schneider Electric’s Barbara Frei on making factories smarter – Crypto News
-
Cryptocurrency3 days ago
California Shuts Down 26 Crypto Scam Sites Tied to $4.6 Million in Losses – Crypto News
-
Cryptocurrency3 days ago
Here’s How Much Shiba Inu Price Will Be Worth if 1 SHIB Equals 10,000 DOGE – Crypto News
-
Cryptocurrency3 days ago
Ethereum Price Analysis Ahead of Upcoming Blood Moon Lunar Eclipse – Crypto News
-
Business3 days ago
Here’s Why Investors Are Revenge Shorting This Meme Coin Even After 30% Crash – Crypto News
-
Technology1 week ago
Robert Kiyosaki Predicts Bitcoin Will Resolve American Financial Woes – Crypto News
-
Technology1 week ago
Nothing Phone 3a Pro vs Nothing Phone 3a: Should you pay extra Rs.5000? – Crypto News
-
others1 week ago
Pound Sterling strengthens against US Dollar as US ADP Employment misses estimates – Crypto News