What is a Multisig?

Multisig is the term used to call Multisignature for short. Multisignature is a strategy or technique to handle transactions and other types of data transfer through digital signatures. In that scheme, multiple signatures must be used to authorize any transaction or action. Different individuals or entities hold these signatures to ensure that no single collaborator has complete control.

This scheme is often used in cryptocurrency wallets and treasuries, and the benefit is that it provides an additional layer of security, requiring multiple signatures to authorize transactions. For instance, a wallet may have five total signers or individuals designated to allow and may require that any three of those five signatures approve the transaction for it to be processed. With this, it's more difficult for any entity to make unauthorized transfers.

Multisig can also be used for purposes beyond cryptocurrency, such as in corporate settings to authorize financial transactions or legal contracts. In these contexts, multisig can help prevent fraud and ensure that decisions are made with the consensus of multiple parties.

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.

Still need help? Contact Us Contact Us