Multisig vs MPC

More than anything else, Supersafe focuses on providing our clients with the tools necessary to protect their funds safely through self-custody means. We do this through a self-governing treasury that only the company has access to and technics such as Multisig so that no one person has absolute control over all finances.

However, multisig is only one technique out there, and there's a lot of talk about how multisig compares against MPC or secure multiparty computation. Multisig (short for multi-signature) and MPC are cryptographic techniques used to enhance the security of digital transactions and protect sensitive data and assets in our environment. However, there are some critical differences between the two approaches.

Multisig is a technology that requires multiple signatures from multiple parties to authorize a transaction. For example, if you have a multisig wallet, you may need two out of three signatures from a group of people to approve a transaction. This approach can provide added security by requiring multiple people to approve a transaction, making it more difficult for a single person to compromise the system. Multisig is often used in cryptocurrency wallets and other systems requiring high-security levels. In our case, it's used in our Treasuries so that assets can only be moved from one location to another with proper approval from multiple entities within the organization.

MPC, on the other hand, is a cryptographic technique that enables multiple parties to jointly compute a function without revealing their inputs. This means that each party can input their data into the function, but its output will not reveal any individual party's input. MPC is often used when multiple parties need to compute a function on sensitive data, such as in finance or healthcare. It can help ensure that each party's data remains private while allowing them to compute a result jointly.

One of the benefits of using Multisig is that it is a well-established technology that has been used for many years in various industries to a significant level of effectiveness. It is also relatively easy to implement and understand. However, it does have some limitations, as some might see the need for multiple parties to coordinate the approval of any transaction as troublesome. Yet, no one can deny the level of security it brings.

MPC, on the other hand, can provide even more robust security guarantees in terms of data falling into the wrong hands by ensuring that individual data inputs remain private. It can also enable complex computations to be performed securely without revealing individual inputs. However, MPC can be more complex to implement and require more specialized expertise.

In summary, both Multisig and MPC are valuable cryptographic techniques that can enhance security in different ways and, to a degree, for other purposes or focus. Multisig is a proven approach that is relatively easy to implement, while MPC provides more robust security guarantees and enables more complex computations but requires more specialized expertise to implement.

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