Secure Two-Party Computation

Definition ∞ Secure Two-Party Computation is a cryptographic protocol that allows two parties to jointly compute a function over their inputs while keeping those inputs private from each other. This technology enables collaborative data analysis or agreement execution without either party revealing their sensitive information. Secure two-party computation is vital for privacy-preserving applications in decentralized finance, supply chain management, and other data-sensitive domains. It establishes a verifiable outcome from private data.
Context ∞ The practical implementation of secure two-party computation is a significant area of research and development, particularly for enhancing privacy and data protection on blockchains. Discussions often address the computational overhead and scalability challenges associated with these advanced cryptographic methods. Future advancements aim to optimize the efficiency and accessibility of secure two-party computation, enabling broader adoption for confidential transactions and verifiable computations across various industries.