Safeguarding the data of users and private keys is vital as Web3 advances. Yet, the number of hacks that have taken place within the Web3 space in just 2022 has been too much, proving that supplementary security measures, along with better forms of decentralisation, are still needed.
As this becomes obvious, several organisations have started availing multiparty computation, abbreviated as MPC, to assure users’ privacy and confidentiality for Web3 platforms. MPC is a cryptographic protocol that uses an algorithm throughout multiple parties. Andrew Masanto, co-founder of Nillion — a Web3 startup specialising in decentralised computation — gave a statement to Cointelegraph that MPC is one of a kind because no individual party can see the other parties’ data. Yet, the parties can together compute an output: “It basically allows multiple parties to run computations without sharing any data.”
Masanto also said that MPC’s history runs parallel to the blockchain. “Around the same time that blockchain was conceptualised, a sibling technology purpose-built for processing and computation within a trustless environment was being developed, which is multiparty computation,” he said.
It has also been pointed out that the theory behind MPC was derived in the early 1980s. Yet, considering the complications of this cryptographic method, practical uses of MPC were delayed for the right time.
Blockchain-based platforms only recently began implementing MPC to assure users’ data confidentiality without compromising sensitive information. Vinson Lee Leow, chief ecosystem officer at Partisia Blockchain — a Web3 infrastructure platform focused on security — is the right ideological match for the blockchain economy.
Dissimilar to public blockchain networks, he stated that MPC is a solution to confidentiality through a network of nodes that computes straight ahead encrypted data with zero knowledge about the information. Keeping it in mind, companies had their goals set on digital asset security and began leveraging MPC in 2020 to make sure the security of users’ private keys. Yet, as Web3 develops, more companies are implementing MPC to build a greater level of decentralised privacy for various use cases.
The assurance of MPC has since aroused the interest of Coinbase, which has currently announced its Web3 application functionality. Coinbase’s new wallet and DApp functionalities are managed with MPC to protect the privacy of senders and receivers while ensuring the precision of a transaction.
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