Wallets, Security & Custody

What is key sharding in crypto custody?

Key sharding is a custody technique that splits a single private key into multiple encrypted fragments, called shards, stored in separate locations so no one place holds the complete key. To authorize a transaction, a defined number of shards must be combined, which removes the single point of failure a whole key represents. For example, a key might be split into five shards held across three regions, with any three required to sign. This limits the damage if one storage location is breached, lost, or compromised.

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