Final answer:
The process referred to involves secure key sharing where a private key is split, encrypted, and parts are sent to third parties. Shamir's Secret Sharing is a common algorithm used for this. It's used in high-security environments like corporate data protection and cryptocurrency wallets.
Step-by-step explanation:
The process you're describing sounds like a method of secure key sharing, sometimes used in cryptographic systems to ensure the private key is not compromised. One such method is called secret sharing, where a private key is divided into parts, and each part is individually encrypted. Shamir's Secret Sharing is a popular algorithm used for this purpose. In this technique, the key is split into multiple parts and a certain number of parts are required to reconstruct the original key, ensuring no single party has complete control. The parts can be encrypted and sent to third parties for safekeeping or distributed amongst multiple stakeholders to prevent unauthorized access to the complete key.
In practical applications, this method is commonly used in environments requiring high security, such as in corporate settings for safeguarding sensitive data or in cryptocurrency wallets to protect access to assets.