Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Guides

How to Architect a Multi-Party Computation System for Sensitive Health Data

A technical guide for developers on designing and implementing a Secure Multi-Party Computation (MPC) system to train models and compute statistics on encrypted health data without centralizing it.
Chainscore Š 2026
introduction
INTRODUCTION

How to Architect a Multi-Party Computation System for Sensitive Health Data

A practical guide to designing secure, privacy-preserving systems for collaborative analysis of confidential medical information using cryptographic protocols.

Multi-Party Computation (MPC) enables multiple parties to jointly compute a function over their private inputs without revealing those inputs to each other. In the context of sensitive health data—such as genomic sequences, patient medical records, or clinical trial results—MPC provides a powerful framework for enabling collaborative research and analytics while preserving patient privacy and complying with regulations like HIPAA and GDPR. Unlike traditional methods that require data centralization, MPC allows computations to occur on encrypted or secret-shared data, ensuring the raw information never leaves its secure, local environment.

Architecting such a system requires careful consideration of the threat model, the specific cryptographic protocol (e.g., Garbled Circuits, Secret Sharing, or Homomorphic Encryption), and the system topology (client-server, peer-to-peer, or a hybrid). A common approach is to use a threshold secret sharing scheme, like Shamir's Secret Sharing, where a patient's data point is split into shares distributed among several non-colluding computation nodes. For a function f(x, y, z), where inputs are held by a hospital, a research institute, and a pharmaceutical company, the system is designed so that these nodes can collaboratively compute the result—such as a statistical correlation or a machine learning model—without any single node learning the others' private values.

The core architecture typically involves three logical layers. The Client Layer is where data owners (e.g., hospitals) pre-process and secret-share their local data. The Computation Layer consists of multiple, independently operated nodes that perform the secure MPC protocol on the shares. Finally, the Result Layer is where the output of the computation is reconstructed and delivered only to authorized parties. For example, to calculate the average treatment efficacy across multiple clinics, each clinic would secret-share its patient outcome data. The MPC nodes would then securely sum the shares and divide by the count, outputting only the final average.

Implementing this requires selecting a robust MPC framework. Libraries like MP-SPDZ or FRESCO provide abstractions for writing MPC programs. A basic secret-sharing setup in a three-party system might involve each party P_i splitting its private integer x_i into three shares using a random polynomial, sending one share to each other party. The code logic for adding two secret-shared values [a] and [b] is then locally simple: each party just adds its corresponding shares of a and b to produce a share of the sum [a+b], with no communication needed for this linear operation.

Key non-functional requirements dominate the design: latency and communication overhead between nodes can be significant, especially for complex circuits; fault tolerance must be addressed to handle node dropouts; and a verifiable computation layer may be needed to ensure nodes followed the protocol correctly. Furthermore, the system must define clear data governance policies—specifying who can initiate a computation, on what data, and who is permitted to receive the results. This is often managed via smart contracts or a dedicated policy engine that issues cryptographic credentials to participants.

In practice, successful deployments, such as for genome-wide association studies or pandemic trend analysis, demonstrate that MPC is no longer just theoretical. By carefully selecting protocols optimized for your computation type (e.g., arithmetic vs. Boolean circuits), using trusted hardware for performance bottlenecks where appropriate, and designing for a specific, well-scoped use case, you can build a system that unlocks the value of collective health data while fundamentally protecting individual privacy.

prerequisites
FOUNDATIONAL CONCEPTS

Prerequisites

Before architecting an MPC system for health data, you must understand the core cryptographic primitives and regulatory landscape that define the project's constraints and possibilities.

Multi-Party Computation (MPC) is a cryptographic protocol that allows multiple parties to jointly compute a function over their private inputs without revealing those inputs to each other. For health data, this enables collaborative analysis—like training a machine learning model on patient records from multiple hospitals—while preserving patient privacy. The security model is based on threshold cryptography, where a secret (e.g., a private key or a data point) is split into shares distributed among participants. The original secret can only be reconstructed if a sufficient number of parties (the threshold) collaborate.

You must select a specific MPC protocol that aligns with your performance and security needs. Garbled Circuits are efficient for fixed, boolean circuit evaluations but are less suited for iterative algorithms. Secret Sharing-based protocols (e.g., SPDZ, Shamir's Secret Sharing) are better for arithmetic operations and are more flexible for complex computations like linear regression. For a health data context, where computations may involve floating-point numbers and iterative training, a secret-sharing scheme like SPDZ, which operates over finite fields or rings, is often the practical choice. Libraries like MP-SPDZ provide implementations.

Health data is governed by strict regulations like HIPAA in the US and GDPR in the EU, which classify it as Protected Health Information (PHI). An MPC architecture does not automatically ensure compliance. You must establish a Data Processing Agreement (DPA) that defines each party as a data processor or controller, ensuring the protocol's cryptographic guarantees are legally recognized as providing data anonymization or pseudonymization. Furthermore, all data must be encrypted in transit and at rest outside the MPC runtime, and participants must be authenticated.

The computational and network overhead of MPC is significant. A simple operation like multiplying two secret-shared numbers requires multiple rounds of communication between all parties. For large genomic datasets, this can become a bottleneck. You must profile your expected operations and dataset size. A hybrid approach is common: use homomorphic encryption for local pre-processing or aggregation on each party's data, then use MPC for the final, privacy-critical computation step. This reduces the interactive rounds and total data transferred across the network.

Finally, you need a concrete deployment model. Will parties run nodes in a trusted execution environment (TEE) like Intel SGX for added integrity? Is the system a permanent network between fixed institutions, or an on-demand service using a decentralized oracle network? For prototyping, you can use a virtual network on a single machine with tools like Docker Compose to simulate multiple parties. Each node will need the MPC runtime (e.g., MP-SPDZ binaries), a secure communication layer (TLS), and a key management system to handle the long-term keys used for authentication and securing communication channels between parties.

key-concepts-text
ARCHITECTURE GUIDE

Core MPC Concepts for Health Data

Multi-Party Computation (MPC) enables collaborative analysis of sensitive health data without exposing the raw information. This guide explains the core architectural principles for building a secure MPC system for healthcare use cases like federated learning and privacy-preserving analytics.

Multi-Party Computation (MPC) is a cryptographic protocol that allows multiple parties to jointly compute a function over their private inputs while keeping those inputs confidentially shared. In a health data context, this means hospitals, research institutions, or insurers can compute aggregate statistics—like the average treatment outcome for a disease—without any single entity seeing another's patient records. The security guarantee is cryptographic: privacy is maintained even if some participants are compromised, provided a threshold (e.g., a majority) remains honest. This is fundamentally different from techniques like homomorphic encryption, which typically involves a single data holder and a single compute node.

Architecting an MPC system requires selecting a foundational protocol. The Garbled Circuits approach is well-suited for fixed, complex functions with boolean circuits, such as running a specific diagnostic algorithm. For iterative computations common in machine learning, Secret Sharing-based protocols like SPDZ or SPD   are more efficient. Here, each party's data is split into mathematically meaningless shares distributed among the compute nodes. All computations occur on these shares, and only the final result is reconstructed. A practical architecture often uses 3-5 non-colluding compute nodes, which could be managed by independent organizations or in trusted execution environments (TEEs) to form the MPC cluster.

A critical design decision is the adversarial model. Most production health MPC systems use a malicious security model, which protects against participants who may arbitrarily deviate from the protocol to learn private data. This is more secure but computationally heavier than the semi-honest model (where parties follow the protocol but try to learn from messages). For health data, malicious security is often mandatory. The architecture must also define the threshold: how many parties can collude before security breaks. A common setup for three parties is a threshold of 1, meaning privacy holds as long as at least two parties are honest.

Integration with existing health data systems presents key challenges. Data must be pre-processed and normalized locally by each data holder before secret sharing to ensure consistency—for example, aligning ICD-10 codes or standardizing lab value units. The MPC runtime itself is often deployed as a set of docker containers or Kubernetes pods across the participating nodes. Communication between nodes is secured with TLS, but the core privacy derives from the MPC protocol, not just transport encryption. Performance is a major consideration; computing a logistic regression on encrypted data can be 1000x slower than on plaintext, requiring careful optimization and benchmarking.

Real-world applications demonstrate this architecture. The MEDITATE project uses MPC to allow multiple hospitals to train a machine learning model for sepsis prediction without sharing patient ICU data. Each hospital secret-shares its data with two other non-profit research nodes. The MPC cluster performs the gradient descent iterations, and only the final trained model—not the intermediate data—is revealed. Another example is private set intersection (PSI), where a pharmaceutical company and a hospital can confidentially determine overlapping patients in clinical trials without revealing their full patient lists, using an MPC protocol based on oblivious transfer.

architectural-components
MPC FOR HEALTH DATA

System Architecture Components

Building a secure MPC system for health data requires integrating specific cryptographic, networking, and data handling components. This guide outlines the essential building blocks.

ARCHITECTURE SELECTION

MPC Protocol Comparison for Health Analytics

Comparison of leading MPC protocols for secure, collaborative computation on sensitive health data sets.

Protocol Feature / MetricSPDZ-2ABY (Arithmetic, Boolean, Yao)MP-SPDZ

Cryptographic Foundation

Secret Sharing (Additive)

Garbled Circuits & Secret Sharing

Secret Sharing (Multiple Schemes)

Supported Computation Types

Arithmetic Circuits

Arithmetic, Boolean, Yao Circuits

Arithmetic, Boolean, Yao Circuits

Active Adversary Security

Passive Adversary Security

Communication Rounds (Logistic Regression)

1 round per layer

~10-15 rounds

1 round per layer

Library Maturity / Tooling

High (C++/Python)

Medium (C++)

High (Python)

Ideal Data Scale

Large Datasets (>1M rows)

Medium Datasets (<100k rows)

Large Datasets (>1M rows)

HIPAA/GDPR Compliance Pathway

Via pre-processing & access logs

Complex, circuit-dependent

Via pre-processing & access logs

step-by-step-implementation
PRIVACY-PRESERVING COMPUTATION

How to Architect a Multi-Party Computation System for Sensitive Health Data

A practical guide to designing and implementing a secure MPC system for collaborative analysis of encrypted medical records without exposing raw patient data.

Multi-Party Computation (MPC) enables multiple parties to jointly compute a function over their private inputs while keeping those inputs encrypted. For health data, this allows hospitals, insurers, and researchers to run analytics—like calculating average treatment outcomes or identifying disease correlations—without ever sharing the underlying patient records. The core cryptographic principle is that data is secret-shared among participants; computations are performed on these encrypted shares, and only the final, aggregated result is revealed. This architecture directly addresses compliance with regulations like HIPAA and GDPR by enforcing data minimization and privacy by design.

The first architectural decision is selecting an MPC protocol. For health data workflows, which often involve complex statistical functions, arithmetic secret sharing protocols like SPDZ or its variants are typically preferred over garbled circuits. These protocols operate over finite fields or rings, making them efficient for the addition and multiplication operations common in analytics. You'll need to establish a network of computation nodes, each managed by a different data-holding institution. A common setup involves three or more nodes to provide security against a minority of colluding malicious parties, a model known as honest-majority MPC.

A practical implementation starts with a data ingestion layer at each participant's site. Before any computation, raw Electronic Health Record (EHR) data must be normalized, anonymized where possible (e.g., removing direct identifiers), and converted into a numerical format suitable for computation. Each data point is then split into secret shares. For example, a patient's lab value x is split into shares [x]₁, [x]₂, [x]₃ such that x = [x]₁ + [x]₂ + [x]₃ mod p (where p is a large prime). Each share is encrypted and sent to a different computation node. The original data x cannot be reconstructed without all shares.

The computation engine consists of the nodes running the MPC protocol. They execute a pre-agreed-upon function, represented as a circuit or a program in an MPC framework like MP-SPDZ or SCALE-MAMBA. For a simple cohort analysis calculating the average cholesterol level for patients with a specific diagnosis, the circuit would securely sum all relevant values and divide by the count. All intermediate values remain as secret shares between the nodes. Communication between nodes uses authenticated, encrypted channels (e.g., TLS), and the system must include mechanisms for input validation and result verification to prevent malicious data injection.

Finally, a orchestration and result release layer manages the workflow. A smart contract on a blockchain like Ethereum or a dedicated coordinator service can sequence the computation phases, handle node synchronization, and manage permissions. Once the computation is complete, the nodes combine their final output shares to reconstruct the plaintext result—for instance, the number 5.2 representing the average value. This result is then made available only to authorized parties who had the right to request the computation. Audit logs of all computation requests and participant actions should be immutably stored to ensure accountability and compliance.

IMPLEMENTATION PATTERNS

Code Examples

Basic MPC with Secret Sharing

This example uses the syft library to perform a simple secure addition of private health metrics (like heart rate values) between two hospitals.

python
import syft as sy
import torch

# Create virtual workers (simulating separate hospitals/parties)
hook = sy.TorchHook(torch)
alice = sy.VirtualWorker(hook, id="alice")
bob = sy.VirtualWorker(hook, id="bob")

# Each party has private data
alice_data = torch.tensor([72.0])  # Hospital A's patient heart rate
bob_data = torch.tensor([68.0])    # Hospital B's patient heart rate

# Encrypt and share the data using Additive Secret Sharing
# Fix precision to 1 decimal place for the secret shared tensor
alice_shared = alice_data.fix_precision().share(alice, bob, crypto_provider=None)
bob_shared = bob_data.fix_precision().share(alice, bob, crypto_provider=None)

# Perform secure computation: calculate the sum of private values
secure_sum = alice_shared + bob_shared

# Get the result back and decode it
result = secure_sum.get().float_precision()
print(f"Secure sum of heart rates: {result.item()}")  # Output: 140.0

What this demonstrates: The two hospitals computed the combined heart rate total without either seeing the other's raw input. The share() method splits the tensor into secret shares sent to the workers.

compliance-data-residency
MPC ARCHITECTURE

Addressing Compliance and Data Residency

Designing a Multi-Party Computation (MPC) system for health data requires a layered approach that enforces privacy, meets regulations like HIPAA/GDPR, and controls data geography.

05

Audit Trail & Regulatory Reporting

Design for provable compliance. Log all events—data receipt, node participation, computation completion—with cryptographic hashes to an immutable ledger. Use zero-knowledge proofs to generate reports that confirm processing rules (e.g., "all nodes were in the EU") without revealing underlying data. Tools like zkAudit can help generate these verifiable compliance certificates for regulators.

MPC FOR HEALTHCARE

Key Management and Node Orchestration

Multi-Party Computation (MPC) enables privacy-preserving analysis of sensitive health data. This guide covers the core architectural decisions for building a secure, compliant, and scalable MPC system.

A Threshold Signature Scheme (TSS) is a specific type of MPC protocol that distributes a private key among multiple parties. No single party ever holds the complete key. Instead, a predefined threshold (e.g., 3 out of 5 nodes) must collaborate to perform a cryptographic operation, like decrypting a patient record or signing a transaction to release an analysis result.

For health data, TSS is crucial because:

  • Data never reconstructs: The raw private key or plaintext data is never assembled in one place, mitigating single points of compromise.
  • Regulatory compliance: It aligns with principles of data minimization and purpose limitation under regulations like HIPAA and GDPR.
  • Fault tolerance: The system remains operational even if some nodes fail or are compromised, as long as the threshold is met.
MPC FOR HEALTH DATA

Frequently Asked Questions

Common technical questions and architectural considerations for developers building privacy-preserving MPC systems for sensitive health data.

Multi-Party Computation (MPC) for health data operates on a threshold cryptography model. The core principle is that no single party ever has access to the complete, unencrypted dataset. Instead, sensitive data (like a patient's genomic sequence or diagnosis) is secret-shared among multiple, independent computation nodes. A computation (e.g., calculating an average biomarker level across a cohort) is performed collaboratively on these encrypted shares. The result is only revealed if a pre-defined threshold (e.g., 3 out of 5 nodes) agrees to combine their shares. This model protects against both external breaches and insider threats, as compromising fewer than the threshold number of nodes reveals no information.

conclusion-next-steps
ARCHITECTURE REVIEW

Conclusion and Next Steps

This guide has outlined the core components for building a secure MPC system for health data. The next steps involve implementing the design, choosing specific libraries, and planning for production deployment.

Architecting an MPC system for health data requires balancing cryptographic security, regulatory compliance, and practical performance. The core design principles are data minimization (processing only necessary data points), end-to-end encryption, and fault-tolerant computation. A successful architecture isolates the MPC nodes in a private, permissioned network, uses a threshold signature scheme (like BLS or ECDSA) for node authentication, and implements a secure client SDK for data providers (e.g., hospitals) to encrypt and submit inputs. The system's trust is distributed, ensuring no single party can reconstruct sensitive patient records.

For implementation, select battle-tested MPC frameworks. Libraries like MP-SPDZ or OpenMined's PySyft provide foundational protocols for secure multi-party computation. For production-grade secret sharing and threshold cryptography, consider TSS-lib or ZenGo-X's multi-party-ecdsa. Your development workflow should include: 1) Writing and testing the MPC circuit (the function, e.g., calculate_avg_glucose_level) in a framework's high-level language, 2) Integrating the node network with a consensus layer (like a BFT protocol) to agree on input validity and output correctness, and 3) Building a verifiable audit log using cryptographic commitments to prove data was processed without tampering.

Before deployment, rigorous testing is non-negotiable. Conduct penetration testing on the node network and API gateways. Run simulations with synthetic health data to benchmark performance—MPC rounds for complex statistics can take seconds, which may be acceptable for batch analytics but not real-time diagnostics. Plan for key management: how will node keys be rotated, and how are master secret shares backed up securely? Finally, document the data flow and security model thoroughly for compliance audits under regulations like HIPAA or GDPR, clearly articulating how patient privacy is preserved through cryptographic guarantees rather than organizational policy alone.

How to Architect an MPC System for Health Data | ChainScore Guides