What is Threshold Signature Scheme (TSS)

A Threshold Signature Scheme (TSS) is a system that is used to generate and distribute cryptographic keys as well as to manage the signing process. TSSs are used by crypto wallets and other key managers to strengthen the security of their customers' private keys by separating and storing them among different nodes on a network. This safeguards users' funds because no single compromised node grants a hacker access to the user's cash. A TSS is a sort of multi-party computation in which different nodes use portions of the private key to sign a transaction. For a signature to be legitimate, a TSS requires that certain criteria (such as the need for a specified quantity of a key's "parts") be fulfilled. Furthermore, a TSS does not show that a signature has received from multiple sources. 

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