Trusted Setup refers to an initial phase in the creation of certain cryptographic protocols, especially in privacy-focused projects like Zcash. During this phase, a specific set of parameters is generated that will later be used for the system’s operations. The key aspect of a Trusted Setup is the need for a group of participants to perform this process securely to ensure that no malicious actions occur. If the setup is compromised, it could allow an attacker to exploit the system and undermine its security, leading to issues like counterfeiting or privacy breaches.To mitigate risks, many projects use multi-party computation or other methods where multiple parties must collaborate to set up the parameters. This way, even if one participant acts deceitfully, their actions wouldn’t lead to a complete compromise.Once the Trusted Setup is completed, and the parameters are verified, it’s vital to destroy any secret information that could allow future manipulation. This final step enhances the trust in the system and ensures that it operates as intended.