[eamann]

It's to protect against the whims of a small set of people.

If one person holds the signing key to do something critical in your system, they're both a single point of failure and a huge security risk all in one. If you distribute that key to, say, 5 different people you've mitigated the single point of failure. But now you have 5 folks who can act potentially unilaterally.

Using a 3 of 5 TSS setup, you've still mitigated the single point of failure (any one or even two folks can go offline and you can still operate) while also protecting against unilateral action. It's a mathematically-enforced version of the "two-man rule." Similar to the way Cloudflare's Red October tool used to work by splitting things between parties: https://blog.cloudflare.com/red-october-cloudflares-open-sou...