DO ALL ROADS LEAD TO MPC? EXPLORING THE END-GAME FOR PRIVACY INFRASTRUCTURE

Summary from the TLDR Crypto newsletter

Increasing onchain privacy is critical for expanding into real-world use cases like financial accounts and minimizing MEV. Though ZK offers strong privacy guarantees, it does not allow multiple parties to interact with the same private state, limiting expressivity, and fully homomorphic encryption limits the strength of privacy guarantees. Multi-party computation (MPC) allows for programmable infrastructure with a shared private state without a single point of failure. Its main challenges are communication overhead and the potential for offchain collusion.