Distributed Keys

Definition ∞ Distributed keys refer to cryptographic keys that are split into multiple parts and held by different entities or locations. This approach, often implemented through multi-party computation or threshold signatures, enhances security by preventing any single point of compromise from controlling the entire key. To authorize an operation, a predetermined number of key parts must be combined, but the full key is never reconstructed in one place. This mechanism is crucial for securing digital assets and sensitive data in decentralized settings.
Context ∞ The deployment of distributed keys is gaining prominence in institutional digital asset custody solutions and for securing decentralized autonomous organizations’ treasuries. News reports frequently highlight new protocols offering enhanced security features through advanced key management schemes. The ongoing development aims to balance security with usability for a wider array of users and applications.