Executive Summary: What Are Multi-Party Computation (MPC) Wallets?
In this article, I explain what multi-party computation (MPC) wallets are, how they differ from other wallet types, the benefits and risks of MPC wallets, and tips on how to select the right MPC wallet for your needs.
Summary: Multi-party computation (MPC) wallets use cryptographic protocols to distribute private keys across multiple parties to enhance security, without revealing keys to any single party.
What are MPC wallets:
- Use MPC protocols to split private keys into "shares"
- Shares distributed to parties controlling wallet
- No single party can compromise wallet
How MPC wallets differ:
- More secure than single-key or multi-sig wallets
- Maintain signer privacy unlike multi-sig
- Not dependent on hardware like hardware wallets
Benefits of MPC wallets:
- Decentralization
- Privacy
- High accuracy
- Remove single points of failure
- Scalability and flexibility
Risks of MPC wallets:
- High communication costs
- Technical complexity
- Not open source or interoperable
Popular MPC wallets:
- ZenGo, Fireblocks, Coinbase, Qredo
Choosing an MPC wallet:
- Know your use case (individual or institutional)
- Compare features and services offered
Full article:
What Are Multi-Party Computation (MPC) Wallets? | CoinMarketCap
Dive into the world of multi-party computation (MPC) wallets, understand how they work, their benefits, risks, top options, and how to choose the right one for secure crypto storage.
CoinMarketCap