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Threshold signature and MPC wallet, side by side

Threshold signature

A threshold signature lets a group share control of one key so that an agreed number of them, say 2 of 3, can sign together while fewer cannot. The result is a single ordinary signature, which on chain looks the same as one made by a single key.

What it means for you. Unlike on-chain multisig, the rules (who holds shares, how many must sign) are not visible to or enforced by the blockchain; they live in the signers' software. If shares are lost below the threshold, or the coordinating software stops working, the funds are as stuck as with a lost private key.

Sources: NIST IR 8214: Threshold Schemes for Cryptographic Primitives, RFC 9591: The FROST protocol for two-round Schnorr threshold signatures, BIP-340: Schnorr Signatures for secp256k1 · checked 4 October 2026

MPC wallet

An MPC wallet uses multi-party computation: the signing key is split into shares held by separate parties or devices, and a set number of them work together to sign. No single share can sign alone, and the full key need never exist in one place.

What it means for you. Who holds the shares decides who controls the funds: if a company holds some, it can block or delay withdrawals. Check how many shares are needed, where each is kept, and whether you can export a usable backup if the provider shuts down.

Sources: NIST CSRC: Threshold cryptography, NIST IR 8214: Threshold schemes for cryptographic primitives, BIP-11: M-of-N standard transactions · checked 4 October 2026

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