Security
What is MPC?
Multi-party computation
Multi-party computation lets several parties jointly compute a result without any of them learning the others' inputs. Applied to wallets, it splits a private key into shares held separately, so a transaction can be signed without the whole key ever existing in one place.
The point is the absence of a single compromise target. A conventional key exists in full somewhere, at least momentarily, and whatever holds it becomes the thing an attacker must reach. In a 2-of-2 scheme with one share bound to the user's device and one held in server-side hardware, compromising either alone yields nothing usable.
The trade is operational rather than cryptographic: recovery must be designed deliberately, because losing a share means losing signing ability, and any recovery path is also a potential bypass. That design — not the signing scheme — is where MPC deployments usually succeed or fail.
Related
Definitions are educational and general. Nothing here is financial, legal or tax advice, and regulatory descriptions summarise frameworks that change — check the current rules for your jurisdiction before relying on them.