Definition ∞ Three-Party Computation is a cryptographic protocol allowing three distinct parties to jointly compute a function over their private inputs. Crucially, no party reveals their individual input to the others during the computation. The result is shared, and each participant only learns their designated output. This method ensures data privacy while enabling collaborative data analysis.
Context ∞ The discussion surrounding Three-Party Computation focuses on its applications in privacy-preserving data analysis, secure voting, and confidential smart contract execution. Its situation involves ongoing efforts to improve computational efficiency and scalability for practical deployment. A critical future development to watch for is its integration into various decentralized applications, offering enhanced privacy guarantees for collaborative operations involving sensitive information.