MPC (Multi-Party Computation)
Strict Definition
"A cryptographic technique that allows multiple parties to jointly compute a function while keeping their individual inputs private. In crypto, it is used to secure wallets without a single private key."
Liability Check // Risk Analysis
The 'Coordination' risk. If the necessary number of key share holders are unavailable (e.g., several employees leave at once), the collective key cannot be reconstructed, and assets are lost.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
"MPC is the best practice for institutional custody, as it eliminates the 'Single Point of Failure' found in traditional private keys."
"Implement a 'Quorum' policy (e.g., 2-of-3 or 3-of-5) that ensures no single individual can authorize a transaction."
"Audit the MPC 'Key Share' distribution annually to ensure redundant backups exist for critical personnel."
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: HZMZ66