GLOSSARY · BLOCKCHAIN & WEB3
MPC (Multi-Party Computation)
What MPC (multi-party computation) is when applied to wallets: the private key is generated and used in shares that are never put together.
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Multi-party computation (MPC) lets several participants compute a valid signature by combining their shares, without any of them seeing the others'. In an MPC wallet, the private key never exists whole anywhere: it is generated and used split into shares across several parties (devices, servers, people), which cooperate to sign without ever reconstructing it.
What is an MPC wallet?
Multi-party computation lets several participants compute a valid signature by combining their shares, without any of them seeing the others'. Compared with multisig — several complete keys, visible on-chain — MPC produces a normal signature (cheaper and more private), works the same on any chain and allows fine-grained approval policies off-chain.
It is the dominant technology in modern institutional custody and in wallet-as-a-service solutions; its small print is the implementation: security depends on the specific cryptographic protocol, on where the shares live and on the recovery procedures — the first thing we ask when evaluating a custodian in crypto-asset custody.
Learn more: Crypto custody providers: institutional solutions and how to choose one
Explained simply
In an MPC wallet, the private key never exists whole anywhere: it is generated and used split into shares across several parties (devices, servers, people), which cooperate to sign without ever reconstructing it. There is no key to steal — that is the point.
MPC: key points
- The key is generated and used in shares that are never reconstructed
- Normal on-chain signature: cheaper and more private than multisig
- Works on any chain; flexible approval policies
- Standard of institutional custody and wallet-as-a-service
MPC: advantages
- No complete key to steal
- Compatible with everything: the chain sees a normal signature
- Fine corporate policies without special contracts
MPC: disadvantages
- Trust in the specific protocol implementation
- Shares also need operating: backup and recovery are critical
- Less transparent on-chain than a visible multisig