Understand the difference between MPCWallet and Multi-signature Wallet in one article

Source: Deng Chain Community

Although both MPC (Multi-Party Computation) wallet and Multi-Signature Wallet are used to enhance the security of private keys and control permissions, their working principles and application scenarios have significant differences.

1. Core Differences

2. Working Principle

3. Security Comparison

4. Cost and Performance Comparison

5. Comparison of Use Cases

6. Pros and Cons Comparison

Multi-Signature Wallet

• Advantages:

• Clear logic, widely applicable to the current blockchain ecosystem.
• Fully on-chain operation, high transparency.

• Disadvantages:

• High execution cost due to reliance on on-chain functionality.
• Private keys need to be managed separately and are vulnerable to single point attacks.

MPC Wallet

• Advantages:

• High privacy and security, private key never leaves the sharded storage.
• Save on-chain operation costs, more suitable for large-scale applications.

• Cons:

• High complexity, relying on advanced cryptographic algorithms.
• Special infrastructure is needed to support multi-party computation.

Summary

• Multisignature Wallet: More suitable for scenarios that require high transparency and fully on-chain operations, such as DAO or on-chain governance.
• MPC Wallet: More suitable for applications that pursue privacy and security, and optimize off-chain costs, such as enterprise-level asset management or highly secure personal wallets.

Choosing the appropriate solution according to the demand is the key!