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MPC means multiple parties compute a result together without one party learning all private inputs. TSS, or threshold signature schemes, apply that idea to digital signatures: a group of participants collectively produces one valid signature when enough participants cooperate. In a wallet, the goal is simple: no single machine should need to hold the full signing key.

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Traditional wallet vs threshold wallet

A Solana validator or dApp does not need to know that threshold signing happened. It only sees a valid Ed25519 signature for the wallet public key.

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DKG

DKG means distributed key generation. It is the ceremony that creates key shares without a trusted dealer. Instead of one party creating a private key and splitting it, all participants contribute randomness and end with:
  • A participant-specific secret key package.
  • A shared public key package.
  • A group public key that verifies final signatures.
In Vaulkyrie, DKG is implemented through the WASM FROST exports in crates/vaulkyrie-frost-wasm/src/lib.rs and wrapped by src/services/frost/frostService.ts.

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Why threshold matters

For a 2-of-3 vault:
  • One lost participant can be tolerated.
  • One compromised participant cannot sign alone.
  • Any two valid participants can sign.
  • A server cosigner can be one participant, but it should not reduce the effective security threshold.

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Vaulkyrie ceremony data

The browser orchestrators exchange three DKG rounds and two signing rounds:

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Failure modes to document honestly

  • If fewer than threshold key packages are available, local signing cannot proceed.
  • If a participant loses its key package and no recovery flow exists for that state, the participant cannot recreate that share.
  • If DKG output is not backed up, the vault can become unrecoverable.
  • If the relay is offline, cross-device ceremonies cannot coordinate, but same-device local signing may still work if enough key packages are present locally.