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Tuesday, June 11, 2024
HomeCryptoWhat is multi-party computation (MPC) and how does it work on blockchain?

What is multi-party computation (MPC) and how does it work on blockchain?

Multi-party computation (MPC) uses additive secret sharing to split and distribute private information among independent parties without revealing the secret information. In the blockchain industry, a growing number of market participants are looking for security solutions to protect their digital assets without compromising on ease of access.

Multi-party computing provides this solution using cryptographic techniques. Let’s learn how multi-party computation works and its applications on blockchain.

What is multi-party computing?

Multi-party computation (MPC), or secure multi-party computation (SMPC), is a cryptographic protocol that allows multiple parties to evaluate a computation while still protecting privacy of confidential information and data that they want to keep private.

Since blockchain networks involve distributing data across multiple networks, MPC is an important piece of the puzzle in solving the data security challenge.

Before the 1980s, encryption methods were only concerned with hiding information. The emergence of multi-party computing in the 80s allowed partial information hiding while performing calculations using data from various sources. Today, multi-party computing has many applications in the secure storage and transfer of digital assets.

How does multi-party computing work?

Secure multi-party computation protocol uses additive secret sharing to split and distribute private information among independent parties. There is no direct interaction between the information source and the recipient.

Take the average salary problem, for example, where one party wants to find the average salary based on the salaries of three employees. If a person earns $40,000, the protocol can split this amount into three parts: $68,000, $32,000, and -$60,000, for a total of $40,000.

The SMPC protocol then randomly divides these three parts among three parties. The same process applies to the other two, resulting in a total of nine pieces of data that are not individually meaningful. Calculating average salaries can now be done without knowing each person’s salary.

Applications of secure multi-party computing

SMPC complements existing blockchain protocols by enhancing security and privacy through additional features. These features provide opportunities for many different blockchain applications.

Eliminate single point of failure

The protocol protects encryption keys from misuse and access by bad actors. SMPC allows encryption keys to be stored in software, providing alternatives to current hardware solutions, which have their own challenges. Under a multi-party computing protocol, multiple entities can apply uniform usage policies, allowing for consistent security measures.


The anonymity of the web3 industry can lead to trust issues. With SMPC, different parties can collaborate and share information without revealing their identities. The rules of a particular protocol may require private information to promote trust. Parties can easily provide information without worrying about other parties accessing it.


Using SMPC ensures that even if bad guys collect information, they cannot put the pieces together to access private information. With the decentralization of blockchain technology, SMPC protocols allow each entity to protect its data instead of storing it in a central location.

Regulatory compliance

With many dApps facing various regulatory hurdles, SMPC provides a solution to comply with data privacy regulations such as GDPR.

Eliminate third parties

Parties often go through a third party to ensure their data is safe and everyone involved does their part. However, with the costs and delays that come with having an intermediary, SMPC eliminates this need.

Limitations of secure multiparty computation

There are some disadvantages of SMPC protocols.

Communication costs

For secret sharing to work, networks of all parties must exist, and transferring information can result in high communication costs. Unlike centralized systems, where a centralized hub receives and stores data, SMPC involves sending pieces of information to each party in the network.

Calculation speed

Enhancing the security and privacy of information on SMPC requires the generation of random numbers. As the number of parties and data size increases, the computation becomes slow, leading to delays in the output.


MPC technology aligns with the security and privacy expectations of the web3 industry. Organizations such as ZenGo, Coinbase, and Fireblocks have introduced wallets that use MPC technology. This technology reduces dependence on encryption keys to access information.

This technology has the potential to improve data security with many use cases. However, factors such as computational speed present a challenge to using the technology in situations where speed and cost are priorities. This raises the issue of expansion; Time will tell how this technology develops to address that challenge.

Thach Sanh

According to Unchained Crypto

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.


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