GlossaryAdvanced
Multi-Signature Wallet
A wallet that requires approval from more than one key before a transaction can be sent.
A multi-signature, or "multisig," wallet requires a minimum number of separate keys to approve a transaction before it can be executed, rather than relying on a single key.
This can reduce single points of failure: if one key is lost or compromised, the funds remain safe as long as the required threshold of remaining keys is still intact and controlled appropriately.
Examples
- A two-of-three multisig wallet requires any two of three designated keys to approve a transaction.
- Organizations sometimes use multisig wallets to require agreement from multiple people before funds move.