What is a Multi-Signature Wallet?

A multi-signature wallet, also known as a multisig wallet, is a type of cryptocurrency wallet that requires multiple private keys or signatures to authorize and execute transactions. Multi-signature wallets enhance security by distributing control over funds among multiple parties, reducing the risk of single points of failure, theft, or unauthorized access. Each transaction initiated from a multi-signature wallet must be approved by a predefined number of signatories, typically set by the wallet creator, before it can be broadcasted and confirmed on the blockchain.