M-of-N Threshold Scheme

An M-of-N threshold scheme is a cryptographic configuration defining the minimum number of participants required to perform an action. In a digital wallet or protocol, N represents the total number of authorized signers, while M is the threshold of signatures needed to validate a transaction.

This ensures that no single individual has unilateral control over the assets. It is a critical component of secure multi-party computation and decentralized governance.

By requiring a majority or specific quorum, it mitigates the risks associated with insider threats or compromised individual keys. This approach balances security with operational flexibility.