GLOSSARY · BLOCKCHAIN & WEB3
Multisig (Multi-signature)
What a multi-signature (multisig) wallet is: several keys to authorise each movement, M-of-N schemes and when to use one in a company.
WHAT IS IT? · FOR DUMMIES
A multisig wallet requires several signatures to move funds: for example, 2 of 3 keys, or 3 of 5. No single person can empty the box — nor can an attacker who steals a single key. It is the crypto equivalent of the joint signature that companies have always used.
WHAT IS IT? · PRO
M-of-N schemes spread the keys across people, devices or entities: thresholds are set by amount, duties are separated (whoever proposes does not approve) and key succession is planned (loss, a partner leaving, contingency). It is the minimum standard of a serious corporate crypto treasury, alongside its modern alternative, MPC — where the key never exists in one piece.
Multisig protects against stolen keys, not against deceived signers: if two signers approve a fraudulent transaction they did not review, the scheme worked and the money left anyway. Processes and limits matter as much as cryptography — the principle we repeat in crypto-asset custody.
01 / Key points
- Several signatures (M-of-N) to authorise each movement
- Removes the single point of failure of one key
- Requires design: thresholds, separation of duties, key succession
- Minimum standard of a corporate crypto treasury
02 / Advantages
- Stealing one key is not enough to drain the funds
- Verifiable on-chain governance of who approves
- No dependence on a custodian if self-managed
03 / Disadvantages
- Slower operations: each signature is a step
- Does not protect against unreviewed signatures (social engineering)
- Loss of quorum if too many keys are lost