MPC

Multi-Party Computation (MPC), is an advanced technology that provides unparalleled security and confidentiality in the blockchain ecosystem. MPC is a cryptographic method that allows multiple parties to securely collaborate to perform calculations on data while maintaining its confidentiality.

One of the key features of MPC is its distributed approach, which allows multiple parties to contribute to a calculation without ever revealing their actual input data. Instead, each party retains sole control of its own data, which is encrypted and securely processed throughout the calculation process.

MPC uses advanced encryption algorithms such as homomorphic encryption and threshold encryption to allow parties to collaborate on calculations without having to share their sensitive data. This ensures that even parties involved in the calculation cannot access the input data of other participants, thus maintaining data confidentiality at all times.

Another important feature of MPC is its resilience to potential attacks and compromises. Since the input data remains encrypted throughout the calculation process, even if any part is compromised or a security breach occurs, the data remains secure and inaccessible to attackers.

MPC also offers significant benefits in terms of risk reduction and regulatory compliance. By allowing businesses to collaborate on sensitive calculations without having to share their actual data, MPC reduces the risks of data leaks and privacy breaches, while helping businesses stay compliant with data protection regulations such as the GDPR.

Another key application of MPC is in the area of multi-party signatures (MPS), where multiple parties must agree to validate a transaction or operation. MPC allows parties to securely collaborate to generate a valid signature without ever revealing the underlying private keys, providing enhanced security for sensitive transactions.

Additionally, MPC provides exceptional flexibility and extensibility, enabling businesses to deploy secure applications and services in a variety of domains, including financial services, healthcare, logistics and more. Whether to protect sensitive data, validate transactions or guarantee the confidentiality of communications, the MPC offers a versatile and powerful solution to meet the most demanding security needs.

Fireblocks uses MPC over other technologies such as Multisig because MPC is protocol agnostic, operationally flexible, and less costly as signing occurs off-chain.

Fireblocks developed the MPC-CMP protocol that applies this concept to blockchain-based ECDSA and EdDSA signatures (used by all blockchains). The Fireblocks MPC-CMP protocol redefines private key security, never gathering a private key as one whole. MPC-CMP also requires fewer transaction rounds for signing (8x faster than standard MPC) and is available with cold storage signing where key shares are stored offline.

Fireblocks distributes the cryptographic MPC shares across multiple tier-1 cloud environments to ensure an extra layer of security even if one of the physical data centers is compromised.