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.
Definition