When it comes to cryptocurrencies, or any other financial product for that matter, the central concern is data security — how do you stop people running off with your money? Cryptography has long been the answer, with scrambled data only able to be decoded if a user has the ‘key’ to the code. Needless to say, this ‘private key’ needs to be stored safely as anyone who has access to it can use it to transfer assets to their own account — or in the blockchain world, to their own crypto wallet. It’s in this area of private key security that MPC technology (Multi-Party Computation) has become one of the most effective tools around.
How Does MPC Technology Work?
Essentially, MPC allows a group of people, each with their own private data, to evaluate a calculation without any of the group having to reveal their data to anyone else. It’s a neat trick that’s built around a concept known as Zero-Knowledge Proof and is central to blockchain security.
Great. But what does that mean in practice?
One of the biggest problems with private keys is their vulnerability when stored in a single location — if all your valuables are in one room, you’re in trouble if anyone gets in. MPC technology, however, allows keys to be broken up into coded parts then shared with a group of people. These people can then perform calculations independently of each other, producing an authorization without ever revealing their part of the code to anybody else. As a result, instead of private keys existing in one place, they’re perpetually fragmented across the blockchain — and good luck trying to hack that.
Solving the Crypto Wallet Problem
Prior to MPC tech, private keys were stored in a single location (such as a hardware security module or a crypto exchange) with a wallet owner having to rely on trust that these locations were secure. Unfortunately, they proved not to be so great. With hackers just having to get lucky once to get in, the keys were vulnerable.
MPC solved all this. With decentralized keys held in multiple parts by multiple people who have no knowledge of each other, a hacker really has his work cut out for him. What’s more, when the key needs to be used, MPC tech choreographs the authorization without the people involved knowing anything about the computation other than their own little coded part. This also stops any of the parties involved from running off with everything and buying themselves a bunch of Ferraris.
It’s this level of MPC security that Escrypto utilizes in its wallets, and what makes the platform so safe. It also makes Escrypto remarkably convenient too, with users able to keep their digital assets online without having to resort to tedious cold-storage solutions.
With MPC tech securing Escrypto’s wallets, digital payments are as easy and quick as they are secure — which is to say, very.