Clear DefinitionsMulti‑Party Computation (MPC) Channels
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Pronunciation
[mul-tee par-tee kahm-pyoo-tey-shun chan-nuhls]
Analogy
Like a group of people jointly holding pieces of a vault combination so that only when enough come together can the vault be opened, but no one ever knows the full combination.
Definition
State channels that use threshold cryptography (MPC) instead of multi‑signature, allowing a group to collectively sign channel updates without any single party ever reconstructing the full private key.
Key Points Intro
MPC channels provide off‑chain scalability with enhanced key security.
Key Points
Threshold signing: t-of-n participants generate signatures collaboratively.
Channel lifecycle: Open, update state off‑chain, and close on‑chain.
No single key: Private key never assembled in one place.
Low latency: Updates require only MPC rounds, no on‑chain gas.
Example
A payment channel network uses MPC among 5 operators with threshold 3 to sign balance updates without exposing keys.
Technical Deep Dive
Security Warning
MPC protocols are sensitive to network delays and malicious participants; require robust threshold parameter selection and complaint handling.
Caveat
MPC setup and rounds add complexity and latency compared to simple multi‑sig.
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