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8 min read

What is MPC?

Explore the essentials of MPC, understand its significance, and learn how this technology is utilized. Gain insights into the importance of MPC and its application in various contexts.
Written by
Bizzllet Team
Published on
April 25, 2023

What is Multi-Party Computation (MPC) and how does it work?

Multi-party computation (MPC) is a cryptographic technique that enables multiple parties to jointly compute a function over their private inputs without revealing them to each other. This technique is gaining increasing attention due to its ability to address the privacy concerns associated with data sharing in various applications, such as securing digital assets, machine learning, and cloud computing.

In traditional computation, data is often shared and processed in a centralized manner, which can lead to data privacy and security issues. In contrast, MPC distributes the computation and allows each party to hold their private data locally while ensuring the computation is performed accurately and efficiently.

MPC is achieved through a cryptographic protocol that defines how the parties interact with each other to compute the desired function without sharing their inputs. The protocol involves input sharing, secure computation, and output reconstruction.

What are MPC wallets, and why is MPC important for crypto?

MPC wallets, also known as multi-party computation wallets, are a type of cryptocurrency wallet that use cryptographic techniques and distributed computing to protect the key shares used to access and manage cryptocurrency funds.

Instead of relying on a single private key stored on a single device, MPC wallets are using key shares distributed across multiple devices, and they are never reconstructed.

What are the advantages of MPC Wallets?

One of the key benefits of MPC is its ability to protect data privacy and security while enabling collaboration among parties. For example, MPC can enable multiple parties to share their salaries for calculating average incomes in a company without compromising their privacy and revealing how much each individual earns. It can also enable companies to collaborate on sensitive business data without revealing trade secrets.

Here is a video that further explores this example.

This approach provides several advantages over traditional single-key wallets.

Risk - It reduces the risk of a single point of failure. Even if one device or party is compromised, the attacker will not have access to the private key, thus unable to steal the cryptocurrency funds.

Security - MPC wallets provide increased security against attacks such as keyloggers, phishing, and malware, as the private key is never fully exposed to any device. Instead, the key shares are securely generated, stored, and computed locally.

Authorization - MPC wallets provide increased flexibility in managing cryptocurrency funds. For example, different key shares can be distributed to different parties or devices, allowing for more complex access and authorization schemes.

What are the challenges of MPC Wallets?

While MPC wallets offer several advantages over traditional single-key wallets, there are also some challenges and limitations associated with this approach:

Complexity - MPC wallets are more complex than other wallets, as they require advanced cryptographic techniques and distributed computing. They are more complex for developers to build and maintain, but not for the end user. Users do not see what happens in the background so the UX can be made very intuitive with the right design.

Risk - MPC technology stands for being very secure however, there are risks associated with being exposed to attacks. For example, if a single party is compromised, nothing happens because the hackers still have to find the remaining key shareowners. However, if the majority of key shares are compromised, funds may be lost. It is very important not to share your private key shares with anyone!

Adoption - MPC wallets are a relatively new technology and were not widely adopted or supported by existing cryptocurrency platforms or infrastructure. This made it more difficult for users to find compatible wallets or services that support this approach. Luckily, the times are changing, and MPC wallets are compatible with more and more platforms.

Where does Bizzllet come into play?

User flow - Our platform prioritizes user convenience by streamlining the onboarding process. We eliminate the need for complicated account setups and burdensome KYC processes. Our simple sign-up method gets you started quickly, and our intuitive dashboard provides a clear and easy-to-understand overview of your digital asset portfolio and business operations.

Multi-chain compatibility - Bizzllet simplifies crypto management by allowing you to store all your assets in one place without hopping between different chain wallets. No more juggling multiple wallets or giving custody to third parties. You will have everything you need in one place and ready when needed.

Role Management - Waiting for other teammates to approve transactions can waste time, especially regarding recurring transactions or transactions under a specific limit. Improve your efficiency by assigning payment limitations to teammates and allocating the budget to the entire team. They can manage them in one click without needing and waiting for collective approvals.


In conclusion, multi-party computation is a powerful technique that enables collaboration and privacy-preserving computation among multiple parties. Its growing popularity in various applications highlights the importance of privacy and security in today's data-driven world.

  • MPC wallets are cryptocurrency wallets that use cryptographic techniques and distributed computing to protect the private keys used to access and manage cryptocurrency funds.
  • MPC wallets offer several advantages over traditional single-key wallets, including reduced risk of a single point of failure, increased security against attacks, and increased flexibility in managing cryptocurrency funds.
  • Bizzllet is a platform that simplifies crypto management by prioritizing user convenience, multi-chain compatibility, and role management.

Bizzllet is a self-custody solution for storing cryptocurrencies and managing day-to-day payments. If your company could benefit from using Bizzllet, sign up for early access.

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