Applying Multiparty Computation to the World of Blockchains

Key Insights

• Multiparty computation (MPC) allows a group of actors to combine a set of individual, private inputs to produce a single public output that can be used for the group’s collective action or decision-making.
• Early applications of MPC within crypto have primarily addressed the single point of failure risks involving private key management.
• Projects are beginning to apply MPC in novel ways, such as trusted zk-SNARK setup ceremonies and cross-chain message authorizations.

Multiparty computation (MPC) is a subset of cryptography that sits at the intersection of data sharing, data processing, and data privacy. MPC allows a group of actors to run a joint computation on a set of inputs without revealing the contents of these inputs to one another. Translated into layman’s terms, MPC allows a group of actors to combine a set of individual, private inputs to produce a single public output that can be used for the group’s collective action or decision-making. Prior to the advent of MPC, this could only be done with the presence of a trusted third-party intermediary (which sacrificed some privacy).

The ability to extract new information from aggregate inputs while preserving the privacy of the system’s components is what makes MPC such a unique form of technology. MPC can extend to virtually any scenario that involves confidential data shared between multiple parties. Some practical examples include sealed-bid auctions, public voting systems, research that requires the disclosure of sensitive information, and private key management.

Making Sense of MPC