Multisig

Multisig (short for “multi-signature”) is a security mechanism in cryptocurrencies that requires multiple private keys to authorize a transaction. This means that instead of a single person controlling a wallet or smart contract, transactions must be approved by multiple participants according to predefined rules (e.g., 2 out of 3 signatures required to execute a transaction).

Multisig is widely used in organizations, investment funds, and teams managing cryptocurrency assets, where collective decision-making is necessary. It enhances security since a single compromised key is not enough to take control of funds. However, it also introduces complexity in management and the risk of losing access if required keys are lost.