Multisig (Multi-Signature)
A wallet that requires multiple private key signatures to authorize a transaction.
Explained Simply
A multisig wallet requires M-of-N signatures to send funds. For example, a 2-of-3 multisig needs any two of three keyholders to approve a transaction. This prevents single points of failure — if one key is stolen or lost, funds remain safe. Multisig is used by teams managing treasury funds, high-net-worth individuals, and DAOs. Popular implementations include Gnosis Safe (now Safe) for Ethereum. The trade-off is complexity — you need to coordinate multiple signers for every transaction.
Example
A company treasury uses a 3-of-5 multisig. Any three executives must sign to move funds, preventing theft by a single person.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.