Multi-Party Computation & Secure Matching

Welcome to the fifth edition of the Singularity Darkpool Deep Dive Series, where we will take a deeper look into the architecture, vision, and innovations powering Singularity’s institutional-grade on-chain Darkpool orderbook.

In each edition, we unpack a specific layer of the Darkpool - from how we prevent MEV and frontrunning to the role of cutting-edge cryptography like ZKPs, FHE, and MPC.

Built to offer compliance without compromise, Singularity delivers confidential, capital-efficient execution tailored for institutions ready to trade on-chain - privately, securely, and without leaving a trace.

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Last edition, we discussed FHE and why it's essential in DeFi.

Now, we turn to the third pillar of Singularity’s privacy-preserving darkpool: Multi-Party Computation.

What is Multi-Party Computation?

MPC is a cryptographic technique that allows multiple independent parties to jointly compute a function over private inputs - without any party having access to the full input or the entire output.

Think of it like this:

• Several parties each hold a piece of a puzzle.
• They collaborate to solve the puzzle without any of them seeing the full picture.

In Singularity’s architecture, this means no single node can:

• Decrypt order data
• Unilaterally verify trades
• Control the cryptographic keys
  
  

Why MPC Matters in a Dark Orderbook

A darkpool that uses FHE and ZKPs still needs:

• A shared encryption key for users to encrypt their orders
• A secure way to decrypt the outcome of FHE-computed order matches
• Verifiability and distributed trust during key generation and decision-making
  
  

That’s where MPC comes in.

It ensures that:

• Keys are never held by one party
• Match results can be decrypted without exposing trade data
• Every part of the process is trust-minimized and auditable
  
  

How MPC Works in Singularity

1. Key Generation by Book Nodes

When a trading session begins, multiple book nodes - the core operators of the Darkpool - use MPC to jointly generate a public encryption key. This key is used by traders to encrypt their orders.

The private fragments of the key remain split across nodes, so no one can decrypt anything independently.

2. Encrypted Order Matching via FHE

Traders submit encrypted orders. FHE is used to perform comparisons (e.g., price, size, asset pair) without revealing the values.

When a match is found, MPC is triggered again.

3. Secure Match Outcome Decryption

Using their separate key shares, book nodes run another MPC process to decrypt only the result:

• Matched ✅
• Not matched ❌
  
  

No additional information (like price, asset, size, or wallet address) is revealed in this process.
 

Only the necessary execution signal is produced - fully verifiable, fully private.

4. Settlement With Distributed Trust

Once a match is confirmed, the trade can be settled on-chain or OTC-style.
Thanks to MPC, the system guarantees:

• No central control
• No data exposure
• No single point of failure
  
  

The Bigger Picture: Trust Without Trust

MPC completes the triad that powers Singularity’s confidential, compliant darkpool:

• ZKPs → prove truth without revealing data
• FHE → process encrypted data without seeing it
• MPC → enable distributed decision-making without centralized trust

Together, they create a zero-leakage, institution-ready execution environment - one that protects privacy while preserving integrity.

What’s Next

In the next edition of our Darkpool Deepdive Series, we’ll zoom out and look at how these components work together in a real-world trading flow - from order submission to final settlement.

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Thanks for reading our fifth edition of Singularity’s Darkpool Deepdive series.In the subsequent deep dives, we’ll take you behind the curtain even more to explore additional core components that power our Darkpool.