What is a Multisig?

Multisig (multi-signature) is a security mechanism that requires multiple private keys to authorize a cryptocurrency transaction or smart contract execution, creating a system where a predefined threshold of signatures from a larger set of authorized participants must approve any action before it can be processed on the blockchain.

This approach implements a "m-of-n" structure where m signatures are required from a total of n possible signers (such as 2-of-3 or 3-of-5), creating distributed control that prevents any single party from unilaterally moving funds or executing sensitive operations, significantly reducing risks from private key theft, internal fraud, or coercion.

Multisig wallets have become essential security infrastructure for organizations handling significant digital assets, including DAOs, treasury management, cryptocurrency exchanges, institutional custody solutions, and escrow services, providing governance frameworks that balance security with operational flexibility.

Beyond simple fund protection, multisig enables sophisticated coordination between parties who may not fully trust each other, supporting use cases like secure inheritance planning, business partner controls, regulated custody solutions, and smart contract governance where distributed authorization aligns with decentralization principles.

Implementations vary across blockchains, from Bitcoin's native multisig script to Ethereum's smart contract-based solutions like Gnosis Safe, with ongoing innovations focusing on improving user experience, reducing transaction costs, adding time-locks or recovery mechanisms, and integrating with hardware security modules to create comprehensive security systems for digital asset management.