NMC nodes engage in pre-processing to generate a key (called a blinding factor ) that can transform
any arbitrary data into something unrecognizable via a process called one-time masking (OTM). OTM is
similar to encryption but faster, more cost-effective, more secure, and much more versatile. The masked
data becomes what we call a particle . These particles are then held by a set of nodes on the network
called Light Nodes.
The blinding factor is the key that can “unmask” the data and reveal the confidential information within.
To keep the key safe, it is dispersed as fragments (called shares) via a secret sharing mechanism
called linear secret sharing (LSS), which are then held by a different set of nodes. Collectively, the
shares make up the blinding factor that can reveal the confidential data, but it would require an
unreasonably large number of NMC nodes to collude for that to happen maliciously. This mechanism of
blinding factors and shares establishes a highly secure network that can store, transfer, and compute
sensitive information even in the presence of malicious actors.
Source: Nillion Q&A document