From theory to practice, how does Partisia Blockchain achieve privacy and industry win-win through MPC technology?

On the evening of March 14th at 20:00, the 38th TinTinWeekly event invited Bruce Ahn, the head of Partisia Blockchain Adoption, Connie Lam, the Solution Architecture Lead at CertiK, Aaron, the CTO of Cregis, Zoe, an investor at Puzzle Ventures and partner at Asymptote, and Qin Xiaofeng, Deputy Editor-in-Chief of Odaily Star Planet, to gather in the live broadcast room with the audience interested in the development of multi-party secure computing. Together, they delved into how MPC technology can become a powerful force driving privacy protection and decentralization in the rapidly evolving Web3 world. This online event attracted nearly 40,000 viewers, many of whom engaged in close interactions with the guests in the live broadcast room.

🎙️ Highlights:https://twitter.com/i/spaces/1BRJjPAlvPBKw

The Integration Of Multi-Party Secure Computing With Blockchain Technology

Differentiated Solutions of Partisia Blockchain

Partisia Blockchain utilizes Privacy-Enhancing Technologies (PET) and Multi-Party Computation (MPC) to provide an innovative solution, aiming to simultaneously protect user data privacy and enhance data security and availability. Bruce explained that, unlike traditional data processing methods, Partisia’s approach not only ensures the security of data processing activities but also strengthens data privacy protection through collaboration with academic institutions in the EMEA region, employing Merkle Trees. Bruce emphasized that Partisia’s goal is to promote industry collaboration rather than compete with other privacy technology providers, driving progress across the entire industry through differentiated solutions.

CertiK’s Security Audit Lens

As MPC and Zero-Knowledge Proof (ZKP) technologies become increasingly prevalent, security auditing has become a crucial step in maintaining the security of blockchain projects. Connie emphasized several key considerations in discussing the audit process for these advanced technologies, including ensuring the security of implementations, discovering vulnerabilities in smart contracts, and conducting thorough cryptographic reviews.

Connie pointed out that CertiK places special emphasis on reviewing server-side design and the interaction process between users and servers for MPC technology. This is aimed at ensuring the security of signature operations and the correct management of data storage permissions. Additionally, CertiK ensures that the MPC libraries used by its clients remain up-to-date to avoid security risks associated with using outdated or malicious code libraries. CertiK adopts a combined approach of automated tools and manual review to conduct comprehensive audits of projects, ensuring they meet the highest security standards. CertiK aims to provide solid security protection for blockchain projects, helping them withstand potential security threats.

Cregis’ Practical Experience with MPC and Contract Multi-Signature Technology

In the process of providing enterprise digital asset solutions, choosing the right technical framework is crucial. Aaron mentioned that while MPC technology offers significant advantages in terms of security and privacy protection, it also faces challenges in terms of performance and resource consumption in practical applications. Compared to MPC, contract multi-signature technology is relatively simple to implement, offers high security, and is easier to audit.

However, Aaron also mentioned that contract multi-signature technology is primarily limited to single-chain operations and may face challenges in cross-chain operations. When considering security and application scenarios, both MPC technology and contract multi-signature technology have their advantages and limitations. For enterprise-level services, the choice of technology depends on specific requirements, expected security levels, and operational complexity. When providing digital asset solutions to clients, Cregis comprehensively considers these factors and selects the technology that best suits the client’s needs.

Puzzle Ventures: Market Potential of Privacy Security and Multi-Party Secure Computing

In the field of privacy security and multi-party secure computing technology, investment opportunities coexist with challenges. Zoe stated that technologies such as Multi-Party Computation (MPC) and Fully Homomorphic Encryption (FHE) have demonstrated their wide applicability and practical value in both Web2 and Web3 scenarios. These technologies, particularly in areas such as finance (especially cross-border financial interactions), healthcare, and Web3 domains like the Internet of Things (IoT) and Edge AI, enhance privacy protection and data security and availability. Zoe admitted that investing in Web3 projects involving MPC or FHE is not easy. These projects may face challenges in business model design and token issuance strategy, making it challenging for investors to find effective exit strategies. Therefore, when conducting investment assessments, it is important to thoroughly examine the project’s use cases, the feasibility of technology implementation, and the market demand and acceptance of these technological solutions.

The Alignment of MPC Technology with Web3 Development Trends

Teacher Qin Xiaofeng has observed that the application scope of Multi-Party Computation (MPC) technology in the Web3 environment is continuously expanding, covering diverse scenarios such as clothing platform management and enterprise payment systems. In recent years, with the emergence of more MPC-related solutions and investment cases, market interest and demand for this technology are growing. However, applying MPC technology to the Web3 domain faces numerous challenges, including the complexity of data sharing, coordination among participants, and the significant time and resource demands during technology deployment. To effectively promote the application and investment in MPC technology, it is essential to fully consider these challenges and seek solutions. This involves not only technological innovation and optimization but also adjustments in project management and collaboration models to alleviate burdens during implementation and facilitate smooth cooperation among parties.

Exploring the Boundaries of Multi-Party Secure Computing: Challenges and Opportunities Coexist

Bridging the Knowledge Gap: Partisia Changing the Data Security Landscape

“Knowledge gaps and usability challenges are major obstacles to the widespread adoption of MPC technology. Despite the concept of MPC existing since the 1970s, widespread understanding and application remain limited,” analyzed Bruce. Particularly, the CPU and network requirements of MPC when dealing with large-scale data may affect its efficiency and scalability. Additionally, security remains a key consideration, especially when cryptographic operations need to be performed on hardware systems. To address these issues, Bruce emphasized that Partisia adopts an approach of education and knowledge sharing. Through collaborations with research institutions, they are committed to making research findings openly accessible to promote broader understanding and application of MPC knowledge. Partisia also addresses technical challenges through collaboration, emphasizing that openness and cooperation are key to overcoming industry barriers.”

The Dual Requirement of Professional Skills and Continuous Learning in Security Auditing

Connie emphasized the scarcity of security auditing talent and the high demand for professional skills. Firstly, she pointed out that security audit experts must have a profound understanding of the core principles of blockchain projects’ operations and MPC solutions, including understanding the motivations behind choosing to use MPC or other related technologies. Additionally, a strong foundation in mathematics and programming is essential for understanding project designs, mathematical formulas in whitepapers, and MPC libraries. Familiarity with traditional cryptographic protocols is also crucial as many projects may rely on or optimize these technologies. Connie also stressed the importance of understanding commonly used libraries and security incidents in the industry. Security auditing professionals are encouraged to actively learn the details of industry security incidents to enhance insight into potential security threats. Lastly, she mentioned that security auditing professionals need comprehensive security assessment capabilities, such as risk assessment, identifying critical components, and utilizing professional tools for analysis. Meanwhile, close collaboration with project teams and a thorough understanding of the logic behind their adoption of specific technologies or making specific modifications are key to conducting effective audits.

Enterprise Applications: Balancing and Regulation of MPC Technology

Aaron first pointed out that while MPC technology has great potential in personal domains, there are certain limitations in enterprise-level applications, especially concerning communication networks and the use of native components in applications. Additionally, implementing MPC technology in enterprise applications involves complexity, including creating and managing different data domains (such as public and private domains) and ensuring equal rights for all participants. For enterprises, Aaron mentioned two main application scenarios: first, using Web3 for receiving payments, which requires enterprises to have financial management capabilities similar to traditional Web2; second, asset management, i.e., how enterprises effectively manage and utilize received funds. He believes that while MPC may not have obvious advantages in asset management, it can provide significant value in facilitating more complex business interactions between enterprises and users, as well as between enterprises.

Aaron pointed out that MPC technology can help enterprises handle business logic involving applications such as DeFi, improving business programmability and complexity handling capabilities. This is particularly important for promoting interaction between enterprises and users. Overall, while MPC technology may not be user-friendly for ordinary users holding shares, it provides enterprises with a way to promote checks and balances and regulation, helping to provide supervised secure services.

Balancing Technology and Business Model Through Dual-Track Strategy in the Secure Computing Field

In the realm of secure computing, technical prowess outweighs business models, particularly for projects involving high technological barriers such as Multi-Party Computation (MPC). Zoe emphasized the importance of a robust technical foundation as the key to establishing a viable business model. She suggested that applications of secure computing should extend beyond governance and finance to broader scenarios, such as Edge AI, where data privacy and security are crucial. Zoe expressed optimism about projects like Partisia Blockchain, which integrates privacy-enhancing technologies into blockchain infrastructure to address critical needs for privacy-protected computation across various applications. Bruce further highlighted the application challenges and technical requirements of MPC in specific scenarios, particularly in deploying AI models on edge devices. Despite the technical challenges, MPC remains an ideal choice as it enables data fusion and processing among multiple parties while preserving privacy.

The Growing Public Interest The Importance of Privacy Security and MPC Technology

Qin Xiaofeng observed that there is indeed a growing interest and attention from the public regarding privacy security and Multi-Party Computation (MPC) technology. This phenomenon is primarily driven by two main factors. The primary factor is the continuous growth in industry demand. As data processing and computing demands continue to expand, especially in scenarios involving sensitive information, the demand for technologies that can safeguard personal privacy, such as MPC, is increasing. These technologies enable data processing and analysis while protecting individual privacy, attracting broader social attention.

Secondly, the evolution of the external environment also plays a significant role. In recent years, frequent data breaches and subsequent changes in regulatory policies have greatly increased public awareness of personal data security. At the same time, with the continuous advancement of technology, the practicality and effectiveness of privacy protection technologies have significantly improved, further stimulating public interest in these technologies.

MPC-as-a-Service Driving Interoperability and Innovation in Cross-Chain Operations

Since the launch of MPC-as-a-Service in 2022, Partisia Blockchain has implemented a series of exciting applications in development. This service allows other blockchain projects to utilize Partisia’s MPC service without needing to build their own MPC system, achieved through Partisia’s interoperability model. The system’s gas fees can be paid using various tokens such as BNB, Polygon, USDC, USDT, and more, not limited to Partisia’s token. Bruce shared several specific application examples:

• Spectrum Auctions: Collaborating with telecom companies, MPC technology is used to process complex spectrum auctions involving large amounts of private data. This technology allows public companies to protect sensitive information during the auction process while completing necessary computations.
• Vaccine Verification: A system has been implemented to verify whether individuals have received specific vaccines, how many times they have been vaccinated, and the type of vaccine received.
• Healthcare Market: In the healthcare sector, MPC technology is used to allow insurance companies, capital market participants, and research institutions to access and compute healthcare data without disclosing patients’ personal information. This addresses privacy issues in traditional data processing methods, allowing for deeper research without violating patient privacy.
• Advertising Data Processing: Partisia is collaborating with advertising companies to use MPC technology to process real-time user data without violating user privacy. This approach aims to replace the current cookie-based data collection model, allowing users to retain control over their data while providing valuable insights to advertisers.

Partisia Blockchain is driving the practical application of privacy-preserving computation in multiple industries through MPC-as-Service. Through these innovative practices, Partisia not only promotes the application of MPC technology but also provides privacy protection solutions for various industries.

Future Prospects and Challenges of the Cryptocurrency Industry

Breaking Ecosystem Silos Achieving Cross-Chain Interoperability

Bruce believes that one of the key issues that the cryptocurrency industry will need to address in the next five years is how to achieve cross-chain interoperability. He used the example of Disney World using Disney dollars to illustrate the existing problem of closed ecosystems in the cryptocurrency ecosystem. In his view, every blockchain project tries to make users only use their own tokens, which is unsustainable. He emphasized that for long-term development, the industry needs to focus more on interoperability and standardization to achieve a more open and scalable cryptocurrency infrastructure.

Navigating Regulatory Compliance in Web3

As cryptocurrency gradually integrates into the mainstream financial system, the pressure from regulatory bodies and compliance requirements continues to increase. Connie and Qin Xiaofeng both emphasized the importance of collaborating with governments and building robust compliance frameworks. This not only relates to the sustainable development of the industry but also is crucial for protecting consumer interests and market stability. Connie pointed out that challenges the cryptocurrency industry will face in the next five years include increased regulatory pressure and market issues. She suggested that the industry should actively respond to regulatory pressure, collaborate with governments to enhance market transparency and fairness. Connie also mentioned that while opportunities in the Web2 space may become scarcer, there will be more opportunities in the Web3 space, particularly in development. She expressed expectations for the industry, hoping for the emergence of “killer apps” that can attract a large number of users and prove their value. “As the cryptocurrency industry develops, regulatory pressure is also increasing. As an emerging field, cryptocurrency needs more regulatory recognition and legal framework support to protect investors’ rights and promote healthy development,” added Professor Qin Xiaofeng. Additionally, the greatest opportunities for the cryptocurrency industry in the next five years lie in mainstream competition and market expansion. With cryptocurrency gradually being accepted by more mainstream financial institutions and investors, the industry has enormous growth potential. For example, the widespread discussion and use of Bitcoin, as well as the market value growth of other cryptocurrencies, are signs of the industry’s move towards mainstream adoption.

The Cryptocurrency Industry’s Turning Point The Power of Collaboration and Innovation

Aaron believes that the cryptocurrency industry has reached a crucial turning point. He quotes Satoshi Nakamoto, emphasizing that the future of cryptocurrency has only two possibilities: either reaching its ultimate value or disappearing completely. Aaron urges industry practitioners to deeply explore and contemplate the fundamental value and meaning of cryptocurrency, emphasizing that only by addressing these fundamental issues can cryptocurrency and its applications differentiate themselves from traditional centralized or decentralized solutions. Furthermore, Aaron emphasizes the importance of collaboration with governments and opposes approaches that deviate from regulation, believing that this is a more sensible and sustainable path for the industry to move forward. He uses the example of the Argentine government exploring new currency systems to illustrate the potential for cryptocurrencies to play a crucial role in the global economy. Finally, Aaron reminds everyone that cryptographic technologies, such as Multi-Party Computation (MPC), while not initially designed for cryptocurrency, have opened up new perspectives and possibilities in the cryptocurrency field.

Conclusion

The cryptocurrency industry is at a crossroads of transformation, facing multiple challenges and opportunities ranging from technological innovation to regulatory cooperation. By strengthening interoperability, improving industry standards, collaborating with governments, and promoting education and innovation, cryptocurrency is poised to realize its important role in the global financial system and bring broader value to society. In this process, industry practitioners, government regulatory agencies, investors, and ordinary users will all play important roles in collectively driving the cryptocurrency industry towards a more open, secure, and beneficial future.

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