As an entrepreneur, you’ll surely agree with me that data is very important to all businesses. With data, organizations can always predict trends and identify new opportunities. Every business needs data to stay relevant and successful in its industry. As important as data is, it also has its problems. In recent years, data privacy and security have become big issues for all organizations. To resolve these problems, companies are now taking advantage of a new approach, known as secure multiparty computation.
What is secure multiparty computation and how does it help you resolve your organization’s data privacy and security issues? Read further to find an answer to this question, including why choosing Escrypto for your crypto payment matters.
What is multiparty computation (MPC)?
In 2021 alone, crypto exchanges lost about 14 billion USD to scammers across the world. In 2020, hackers were also able to steal billions of dollars from different exchanges. One popular incident is the one that happened to Kucoin, where attackers took home over $275 million. This scam was possible because certain private and security keys became compromised.
Apart from the multi-million dollars Kucoin hacks, many other exchanges across the world have suffered at the hands of hackers due to data privacy and security. However, to address this issue, exchanges are now using secure multiparty computation to protect their assets.
In case you don’t know, MPC is a strong security measure that businesses are now using to protect their assets. This technique is more of a cryptographic protocol that businesses use to power shared computation. However, this doesn’t include the risk of compromising data privacy and security.
In simple terms, MPC involves data sharing and distribution across multiple individuals. The interesting thing, however, is that this data distribution process happens without any single individual seeing the other party’s information.
If you’re familiar with the traditional cryptographic mechanisms regarding data privacy and security, that’s exactly what MPC builds on.
Here’s how MPC works
Now, let’s talk about where secure multiparty computation works with the example below:
Let’s assume there are three employees (A, B, C) in an organization. They want to understand who earns more between them. However, these people don’t trust themselves enough to release data regarding their payslips.
Instead of releasing their data, they agree to compute a function for their inputs without revealing the inputs. But how do we ensure that these people use the correct inputs without necessarily having to reveal them?
Here’s where the need to use MPC comes into the scene. Secure multiparty computation is all about two different things; “Privacy” and “Correctness”.
One highlighting feature of MPC is secret data sharing. It allows all individuals to share their inputs anonymously. All individual inputs are subdivided into bite sizes and shared with the other parties. Unless these inputs come together as one, their pieces have no meaning on their own.
Now, let’s assume A earns $50k, B earns $60k, and C earns $45k. Instead of A directly saying the amount earned, he generates three numbers ($100k, $10k, -$60k). B and C also generate three different numbers ($120k, $40k, -$100k) and ($5k, $50k, -$10k), respectively. After that, A, B, and C proceed by sharing just two out of their three numbers. They add up these figures and achieve a value, which is irrelevant to their salaries without the third number. That’s exactly how multiparty computation works. To use MPC for anonymous data or keys, you need Threshold Signature Scheme (TSS).
What are MPC wallets?
MPC wallets involve the creation of wallets for cryptocurrencies and tokens. The aim of this move is simply to offer the best security standards for businesses and individuals.
The only difference between an MPC wallet and a crypto wallet is that the former features private keys and control, which are divided and distributed between different devices. Each device will have access and control to a key. However, this key needs to be joined with the other key to be able to access funds from the multiparty computation wallet.
Why should you consider Escrypto for your crypto payment?
Escrypto has software that packs tons of excellent features, which you’ll find useful for making secure crypto transactions. One key feature is its MPC wallet option. This offering will allow multiple party approvals for any advanced transactions for your business. You can contact Escrypto to better understand how its crypto payment solutions work.
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