GlossaryIntermediate

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. See Kaavon's "Threshold Signature" and "Multi-Party Computation" glossary definitions for two different technical approaches that achieve a similar multi-party-control goal without using traditional separate multisig signatures.

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.