Question

How does the concept of "multi-party computation" (MPC) enhance security in Bitcoin custody solutions?

Answer 1

Multi-party computation (MPC) enhances security in Bitcoin custody solutions by utilizing a cryptographic protocol that allows multiple parties to jointly compute a function while keeping their respective inputs private. In the context of Bitcoin custody, MPC can be applied to create a system where no single party has access to the full private key required to authorize transactions. This_

Answer 2

Multi-party computation (MPC) enhances security in Bitcoin custody solutions by allowing multiple parties to jointly compute a function without revealing their individual inputs. In the context of Bitcoin custody, this means that no single party has access to the complete private key required to access the bitcoins. Instead, each party holds a share of the private key, and multiple parties must cooperate to perform transactions. This reduces the risk of a single point of failure or a single party absconding with the funds, thereby enhancing the overall security of the Bitcoin custody solution.