A cryptographic protocol that enables distributed key generation and signing, where a group of parties collaboratively produce a digital signature without any single party holding the full private key. It requires a predefined threshold (e.g., t-of-n participants) to approve and generate the signature, enhancing security by eliminating single points of failure. In Blockchain contexts, a Threshold Signature Scheme (TSS) is commonly used in Multi-Party Computation (MPC) wallets and protocols to authorize transactions securely, such as in cross-chain bridges or custody solutions, while maintaining privacy of individual keys. This approach provides resilience against key compromise and supports applications like decentralized validators or secure asset transfers.
Glossary Term Definition