A cross-chain liquidity protocol enables the seamless flow of financial information across distinct blockchains. It creates a unified, cross-chain network to convert tokens between blockchains without giving up possession of your assets.
Layer 2 networks enable faster transactions per second (tps) and scaling than Layer 1 blockchains. Layer 2 networks therefore allow assets to be moved at a greatly reduced cost compared to performing transactions directly on layer 1 networks such as Bitcoin and Ethereum. Layer 2 transactions and processes take place independently of layer 1 blockchains and are referred to as off-chain.
A Multi-Party Computation (MPC) uses private key shares to arrive at an output such that the shares are never revealed to the other parties.
A Multi-Party Computation (MPC) uses secret inputs to arrive at an output such that the inputs are never revealed to the other parties involved in the calculation. In the context of Elliptic Curve Digital Signature Algorithm (ECDSA) the secret values are the private key, w, and the ephemeral secret value, k. Both these values are random integers less than a large prime n. It is therefore possible to generate a signature that is a function of several private key shares such that the private key is never combined in whole form.