What is an MPC wallet?

Multi-party computation wallet is a keyless system that replaces the private key with individual key shares separately generated by multiple non-trusting parties without sharing any data.

Traditional cryptocurrency wallets typically store a user’s private keys on a single device, such as a smartphone or computer. However, this creates a single point of failure, as if the device is lost or compromised, the private keys can be stolen, and the user’s assets can be accessed by unauthorized parties.

MPC wallets, on the other hand, use a decentralized approach that involves splitting the private keys across multiple devices or servers, which are controlled by different parties. This ensures that no single party has complete access to the private keys, making it much more difficult for attackers to steal them.

In an MPC wallet, multiple parties must come together and contribute their “shares” of the private key to perform transactions. This is done using a cryptographic technique called “secure multiparty computation,” which allows multiple parties to jointly compute a function without revealing their individual inputs.

In simple words:

It works by dividing your secret “key” into many smaller pieces and spreading them across multiple devices. That way, no single device has complete control over your key, making it harder for bad guys to steal your money.

When you want to send or receive cryptocurrency with an MPC wallet, several people or computers have to work together and combine their pieces of the key. This ensures that the transaction is safe and secure, and nobody can cheat or steal your money.

Overall, an MPC wallet is a great way to keep your cryptocurrency safe and protected, especially if you have a lot of money invested in it.