Multisig
A multisig, short for multi-signature wallet, is a wallet or account structure requiring approval from multiple authorised keys before certain transactions can be executed.
✦ Key Insight
Multisig reduces dependence on a single private key. It is widely used for: DAO treasuries Company crypto holdings Protocol administration Investment funds Shared wallets High-value personal custody If one key is compromised, an attacker may still be unable to move assets without the other required signatures.
✕ Common Misconceptions
Keeping multiple keys in the same location
Giving one person control of most keys
Losing too many signing keys
Failing to define signer replacement procedures
Treating multisig as protection from malicious signers
Using weak devices for every signer
Detailed Explanation
How It Works
A multisig might use a 2-of-3 configuration.
Three authorised keys exist, but any two are required to approve a transaction.
Other arrangements include 3-of-5 or 4-of-7.
The correct structure depends on the organisation's security and operational requirements.
FAQs
Is multisig safer than a single key?
It can significantly reduce single-key risk when designed correctly.
What does 2-of-3 mean?
Any two of three authorised keys must approve the transaction.