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In the world of digital assets, private keys are everything. A wallet’s private key controls access to funds, making it the digital equivalent of a vault key. If stolen, assets are gone forever; if lost, the vault is permanently locked. This fragile setup highlights the need for stronger, more resilient security mechanisms—especially when handling large sums.
The Limitations of Multisig
Traditionally, multi-signature (Multisig) technology has been used to strengthen wallet security. Instead of one key, multiple keys are required to unlock a vault. This way, no single party can move funds alone.
While Multisig improves security, it comes with drawbacks:
- Higher transaction fees (due to larger transaction sizes).
- Visibility on-chain, making multisig wallets easier to track.
- Limited flexibility, as different blockchains require different multisig implementations.
Enter Threshold Signature Scheme (TSS)
The Threshold Signature Scheme (TSS) takes wallet security to the next level. Unlike Multisig, where multiple locks are placed on a vault, TSS builds a single modular lock that can be partially unlocked by multiple independent keys.
Here’s how it works:
- Each participating node generates its own key independently.
- These nodes collaborate to create a single cryptographic lock.
- To unlock, each node contributes partial “turns” of the key.
A threshold number of participants can complete the unlocking—meaning not all are required, only a predefined subset.
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Advantages of TSS Over Multisig
TSS offers several key benefits:
- Lower costs: Transactions are cheaper since TSS signatures look like standard single-signature transactions.
- Privacy: On-chain, TSS signatures are indistinguishable from regular wallets, avoiding unwanted attention.
- Cross-chain compatibility: Unlike Multisig, which must be coded differently for each blockchain, TSS works seamlessly across multiple blockchain architectures.
Why It Matters for Projects Like MAYAChain
For platforms like MAYAChain (and similarly THORChain), which secure large vaults of pooled assets, relying on a single custodian or keyholder is too risky. TSS distributes responsibility across multiple nodes, reducing both the risk of theft and the chance of catastrophic loss.
By combining decentralization with cryptographic innovation, TSS ensures that crypto vaults remain both accessible and secure—even in the face of failures or attacks.
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