TL;DR: Users are unable to maintain private keys securely and conveniently, so instead you use a k-of-n secret sharing scheme to split your private key across multiples nodes. To execute a blockchain transaction you request those nodes to send you the shares so you can reconstruct the private key. How do you authenticate yourself to the nodes? With a password[1].... ¯\_(ツ)_/¯
[1] Presumably one at least as strong as the private key you couldn't securely and conveniently store.