What is a Multi-Signature Wallet?

Multi-Sig wallets require more than one signature - typically from different private keys - to authorise a Bitcoin transaction. . Users can set up their Multi-Sig wallet to require, for instance, three out of five signatures to authorise a transaction, often denoted as a 3-of-5 wallet.

DALL·E 2023-11-09 00.18.16 - Visualize the concept of a Multi-Signature (Multi-Sig) Wallet in cryptocurrency. The image should feature a secure, futuristic wallet composed of inte

Multi-Sig technology augments the security framework of cryptocurrency dealings. By demanding more than one signature, it fosters a system of checks and balances, making it a potentially suitable choice for shared funds or organisational asset management. Moreover, it can act as a self-imposed safeguard against impulsive transactions.

They are sometimes preferred by business partnerships where joint approval is necessary for fund access. Furthermore, they can serve as a robust security mechanism for individual users, providing an additional layer of security against hacking attempts.