Threshold cryptography has emerged as a promising approach to enhance security, decentralization and fault tolerance in distributed ledger systems. The paper discusses the implementation of threshold cryptography schemes to blockchain systems to mitigate single-point key failures, and improve the authentication of transactions. The paper presents an architectural scheme that entails threshold key generation, distributed key management and collaborative signature techniques that are suitable for the wallets and validator nodes. Mathematical formulations of thresholds signatures are defined to demonstrate the appropriateness and strength in adverse scenarios. It exhibits a better security resilience, attack resistance and reliability of the system, as compared to the conventional cryptography methods. Experimental results are analyzed risk of key compromise is reduced and more distribution of trust is achieved without a reduction in efficiency. The proposed solution is particularly applicable to decentralized finance and the implementation of enterprise blockchain which offers a safe and scalable alternative to the existing distributed systems.