MPC or Multi-Party Computation wallets are a type of crypto wallet or digital wallet that uses cryptographic techniques to keep private keys secure by splitting them into pieces. Instead of storing the entire key in one place like in traditional wallets, MPC wallets divide the private key into “shards” or pieces that are stored in separate locations. When needed, the pieces work together to camouflage transactions, but the full key is never put back together.

This method makes MPC wallets more secure because if one of the key pieces is stolen, the full key remains inaccessible to hackers. This is in contrast to hot wallets or hardware wallets that store all private keys in one place, making them more vulnerable to theft if access to the device is gained by an irresponsible party.