📪1Bitpay MPC WaaS
Next-generation Institutional Wallet
Last updated
Next-generation Institutional Wallet
Last updated
If you are into institutional-grade security, you have probably heard about MPC (Multi-Party Computation). MPC is one of the most well-researched areas in cryptography. In 1982, Andrew Chi-Chih Yao proposed the famous "Millionaire's Problem". Two millionaires want to know who is wealthier without revealing their own financial information, which is exactly the problem of MPC. To achieve MPC, Andrew first proposed a protocol named the Secure Two-party Computation Protocol.
The purpose of MPC is to allow multiple parties to compute a function where each party has an input to the function, with the added condition that the inputs remain private, confidential, and undisclosed.
MPC applies sophisticated protocols to be able to interact privately while solving a contradictory specific problem:
Multiple parties want to compute data based on the private input of others.
All the parties' input remains intact, private, confidential, and undisclosed.
The main technical methods are:
Homomorphic encryption (HME): allows operations to be performed on encrypted data, and the results are securely delivered to the requester, without the data being decrypted at any point.
Secret sharing: Inputs are split into shares and distributed amongst a group or network. Each individual share is useless on its own but when multiple shares are together, they reconstruct an original secret.
Today, MPC is utilized for numerous of fully functioning, commercially viable applications, such as cloud-based data analysis, electronic voting, and privacy-centric data interaction. It is becoming a solid foundation and standard for privacy protection in distributed computation and collaboration.
MPC allows multiple parties to compute a function simultaneously where each party has an input to the function, with the added condition that the inputs remain private, confidential, and undisclosed.
This is the core of MPC.
MPC computations are carried out among a group or a network. Each party is only needed its own input and intermediate results. The output of the function is generated in a decentralized environment. And hence, MPC computations support distributed computing.
One of the design goals of MPC is Security protection. The whole operation, from input, intermediate data, and the computation process, is secured, without revealing any information until the final result.
To offer utility in the business world, MPC must be efficient and competitive. Military-grade accuracy to complete the computation within a limited timeframe is understood and applied in MPC.
MPC allows unlimited parties to input and compute without generating any pressure on computation.
In addition, MPC is also fault tolerance and universality.
Simply put, MPC is an innovative way to protect data privacy. It supports distributed computing to be a more efficient, secure, and scalable infrastructure.
The following are some typical applications:
Financial Services: In banking, securities, insurance, and other financial fields, companies need to share and process sensitive data, such as customer information, transaction data, and risk assessments. MPC is involved to conduct data analysis such as joint risk assessment, hedging strategies, and credit ratings while protecting customer privacy.
Healthcare: Hospitals and research institutions are required to process massive amounts of sensitive patient data. MPC enables them to share and mine data without disclosing patient privacy, thereby accelerating disease diagnosis, treatment, and medicine development.
Data Mining and Machine Learning: MPC allows multi-party data mining and machine learning model training while protecting data privacy. This helps companies and research institutions achieve data-driven innovation and optimization while remaining compliant.
Supply Chain Management: Trade secrets, such as inventory reports, sales numbers, production data and cost breakdown is shared among partners for more efficient resource allocation. MPC can help supply chain parties achieve collaborative management and optimization while protecting corporate trade secrets.
Privacy-Protected Advertising: MPC allows the advertising industry to process and evaluate large amounts of user data for precise ad targeting and delivery while protecting user privacy.
Smart Cities and IoT: Various devices and sensors are necessary to share large amounts of data for intelligent management and services. MPC can help achieve data sharing and processing while protecting user and device privacy.
Secure, secret Voting and verifiable Auctions: MPC is utilized to secure electronic voting and auction systems, ensuring the privacy and tamper-resistance of the voting process and bidding results.
These are just the tip of the iceberg of utilizing MPC. As technology advances, MPC would catalyze the protection of data privacy and secure computing around the globe.
MPC provides a higher level of security, privacy protection, and scalability for blockchain systems. Let's walk you through some MPC implementations to get a better understanding of how to harness its power and possibility.
By utilizing MPC technology, private key never exists. Instead, key shards are created simultaneously and distributed to each party. To enable a transaction, all parties apply their key shards to the transaction without ever exposing each other at any time. Thus, unless all key shards are compromised simultaneously to authorise a transaction, MPC is positively an absolute way to protect against cyber breaches, physical damage, and insider collusion.
MPC technology is exercised to enforce secret, verifiable transactions and payments without disclosing any fiber of details. Thus, user privacy is guaranteed while maintaining the transparency and immutability of the blockchain system.
MPC-based identity verification technology is changing the Game. Together with Zero-Knowledge Proofs, users are now able to validate their id, identity, document, or certain status and conditions specifically requested without revealing any personal information. It empowers access to accurate and anonymous KYC and AML processes through decentralized identity management.
MPC can be used to implement decentralized secure computation and data sharing. By using MPC, multiple participants can jointly complete computational tasks, such as executing smart contracts, performing data analysis, and evaluating risks while protecting their data privacy. This can enhance the functionality and scalability of blockchain systems.
Thanks to MPC technology, data sharing or user behaviour in a group or a network can now stay incognito and invisible. Validators are able to conduct encrypted voting, submit secret information and complete the consensus process without revealing their votes or secret information. Hence, it is employed in the design of blockchain consensus algorithms to achieve better efficient and secure user confidence and validation processes.
MPC is deployed to atomic swaps and cross-chain protocols to safeguard transaction data and information. This way, users are allowed to perform asset transfers and data exchanges between different blockchains with confidence and ease.
MPC-based voting and decision-making process are introduced to avoid revealing any voting intentions and identity. It is trusted by DAOs members to improve their security and autonomy.
MPC is a unique cryptographic protocol that demonstrates a strong commitment to data privacy and security. It allows multiple parties to share computing power while maintaining confidentiality, opening up new areas of secure data collaboration. MPC has not only become one of the primary technologies to secure crypto assets in industries such as finance, healthcare, and supply chain but also brings a higher level of security and privacy protection to users. Looking to the future, the development of MPC will continue to promote security and compliance in the digital world, providing strong support for the protection of personal privacy and trade secrets. This innovative technology will undoubtedly continue to play a crucial role in the increasingly interconnected world.
