Definition ∞ Multisig Escrow, short for multisignature escrow, is a security mechanism that requires multiple cryptographic signatures from different parties to authorize a transaction or release of funds. This distributed authorization prevents a single entity from unilaterally controlling or absconding with assets held in escrow. It is commonly employed in smart contracts to facilitate secure transactions between untrusted parties, ensuring that conditions are met before assets are disbursed. This protocol significantly bolsters transaction security and trust.
Context ∞ Multisig Escrow arrangements are increasingly discussed in the context of decentralized finance (DeFi) platforms, high-value digital asset transfers, and secure custody solutions. The implementation details and security audits of these systems are critical topics. News coverage often highlights their use in mitigating risks associated with smart contract vulnerabilities and ensuring fair dispute resolution in complex digital asset transactions.
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