Applications and use cases of threshold signatures
Blockchain and distributed networks
Thanks to the advantages offered by Threshold Signature schemes, they can be used in blockchains networks and distributed networks to raise your levels of security and privacy. For example, generating a public address through threshold signatures requires multiple parties to compute their portions of the private key or secret share to generate a public key together.
And as we already mentioned, neither party has a need to reveal the portion of the private key that they have. Then, once the public key has been generated, the public address can be generated as it happens in traditional systems.
The difference with threshold signatures is that there is no single point of failure regarding the private key. Since it is distributed among several members who participate within the signature scheme.
International shipments may take up to purses of cryptocurrencies based on these signature schemes have a more complex structure and a higher level of security and privacy than traditional wallets or multisig wallets. First of all, contrary to traditional wallets HDIn the Threshold wallets each participant has their own seed or phrase. This prevents the private keys associated with that wallet from being derived or retrieved from the seed it owns. Instead, all the seeds are needed to derive the final key.
Likewise, the transactions made through these wallets are much cheaper. This is because threshold signatures are reflected as a single signature. This makes it unnecessary to process the information of each of the signatories within the blockchain, as is the case with traditional or multisig wallets. Therefore, members do not need to pay additional commission rates for signature verification.
On the other hand, wallets with threshold signatures can operate on multiple blockchains at the same time. This reduces the risk of errors when operating with smart contracts and dApps.
Among the wallets that support this type of operation are Binance (compatible for Bitcoin, Ethereum and Binance Chain), using a development library and through advanced intervention. The wallet also offers support Friends y zengo. And it can be manually implemented in other wallets using Threshold Signature Scheme Toolkit (TSSKit)
In key management and administration systems, threshold signature schemes can achieve much more flexible management. And it is that it can be adapted to the particular needs of the participating members. For example, with these schemes you can design authorization models that are in accordance with the priorities of the users.