Multisig (multi-signature)
In short
Multisig splits control of a wallet across several keys: a transaction then needs, say, two of three signatures. If an attacker compromises one key, that is not enough to move funds.
Multisig is the standard for large holdings, companies and shared funds — it removes the single point of failure. The price is complexity in setup and management; backups must be planned for each key.
What does "2 of 3" mean in multisig?
Of three existing keys, two must sign a transaction. A lost key does not lock you out, and a stolen one is not enough for the attacker.
Related terms
Information, not investment advice. More of this? The newsletter.