What Is the Concept of “Threshold Security” in the Context of Decentralized Computation?

Threshold security means that the oracle's operation (e.g. signing a price report) requires a minimum number of participants, $T$, out of the total number of participants, $N$, to agree. This ensures that no single node or small subset of nodes can unilaterally compromise the system.

The system remains secure as long as fewer than $T$ nodes are compromised.