Definition ∞ Multi-signatures, or multisig, is a type of digital signature scheme that requires two or more private keys to authorize a cryptocurrency transaction or execute a smart contract. Unlike a standard single-signature transaction, multisig mandates approval from a predefined number of participants out of a total set of possible signers, such as two out of three keys. This cryptographic method significantly enhances the security of digital asset storage and transfer by distributing control and eliminating single points of failure. It is widely used for shared wallets and organizational funds.
Context ∞ Multi-signatures are frequently discussed in crypto news concerning institutional custody solutions, decentralized autonomous organizations, and enhanced security practices for individual users. Their implementation is critical for managing shared digital asset treasuries and for protecting significant holdings from single-key compromises or insider threats. A key discussion involves the optimal threshold for signatures and the trade-offs between security benefits and transactional convenience, particularly in complex governance structures.
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