Multi-party computation, also known as MPC, is an effective cryptographic tool that enables different (multiple) parties to make calculations based on combined data, without having to reveal their input. As a business owner, MPC can always help you to secure your sensitive data. This means your data is never vulnerable to third parties and intelligence systems.
Today, the MPC wallet is a unique wallet that utilizes multi-party computation. This wallet is similar to the regular and common wallets out there. The only difference, however, is that its controls and password are often stored on other devices. As you read on, you’ll discover the benefits attached to using an MPC wallet for your business.
What is a multi-party computation wallet?
As earlier mentioned, an MPC wallet is a unique wallet that uses a cryptographic tool, known as multi-party computation. With the help of MPC, this wallet offers strong security guarantees to both business owners and individuals.
If you’re familiar with “multi-signature wallets”, you’ll agree with us that MPC wallets aren’t the first unique wallets that allow multi-party control. Also known as multi-sig, multi-signature wallets are often designed to utilize a unique digital signature. Interestingly, for this signature to authenticate an outgoing transaction, it needs more than one private key. That said, the big difference between an MPC wallet and a multi-sig wallet is that the former only works by dividing “one private key” among the parties involved.
As amazing as multi-signature wallets are, they have a few issues – this is what MPC wallets are designed to address.
How do MPC Wallets benefit business owners?
High accuracy & flexibility
As earlier mentioned, multi-signature wallets have a few challenges. One of them is that it often becomes difficult to adjust the process of accessing and transferring assets when the corporation that manages the asset expands. With an MPC wallet, there’s no such thing as this issue. With the help of cryptography, this wallet can deliver highly accurate results, irrespective of the situation.
Another challenge you’ll most likely face with a multi-signature wallet is “no protocol agnosticism”. What does this mean? It’s pretty simple. Today, a lot of digital assets are being distributed across ever-increasing blockchain networks. Unfortunately, only a few of these networks, such as Ethereum and Bitcoin, can support the technical multi-signature schemes. The bottom line here is that if your business requires more digital assets, you’ll be needing a lot of signature solutions.
How does an MPC wallet address this challenge?
This unique wallet is designed in such a way that it can help you manage a large variety of digital assets on a single platform. This solution is what multi-signature wallets can’t offer.
Ease of administration
One good thing you can’t take away from multi-signature wallets is that they are effective for offering their users control over governance. While this is okay, the challenging part is these wallets hardly focus on how to help businesses decide the number of employees to sign an outgoing transaction.
How does a multi-party computation wallet come to your rescue?
It’s simple, with this unique wallet, you’ll be able to assign an unlimited number of people (approvers) of an outgoing transaction to a policy.
Are you in need of an MPC wallet for your business?
If you’re ready to enjoy all the goodies that come with using a multi-party computation wallet, Escrypto is one of the few reliable platforms you can turn to. You can reach out to us, to learn more about how we can help you securely manage your digital assets.