Update
THORChain's Vault Management System Explained
THORChain uses a Threshold Signature Scheme (TSS) to manage vaults securely. Nodes jointly generate secret key shares, allowing them to sign transactions without assembling a complete private key. Under normal operation, moving funds requires the agreement of two-thirds of the nodes. The system ensures that no single entity can steal funds, as the private key is distributed across multiple validators as secret shares. The TSS process is broken down into KeyGen and Threshold signing, ensuring secure multi-party vault management without trusted dealers or centralized key storage.