A threshold signature system (TSS) is a unique public-key cryptography scheme that aims to take away the need for single private keys securing a user’s assets all by itself. It functions by distributing secret keys to multiple users, called their ‘secret share.’
These keys are then used in order to derive the group’s public key, which they need to facilitate their blockchain transactions.
In TSS, a group of users can work together as transaction signers for each other. A number of them will be considered active signers who can also be assigned to authorize transactions on behalf of other signers. If a certain portion of the participants in the group agrees to provide their signature on a transaction, it goes through.