Definition ∞ Multisig wallet security refers to a digital asset storage method requiring multiple private keys to authorize a transaction. Unlike single-signature wallets, multisig setups distribute control, meaning no single person or entity can move funds independently. This mechanism significantly reduces the risk of theft from a compromised single key or a single point of failure.
Context ∞ Multisig wallet security is a widely adopted practice for securing large holdings of digital assets by exchanges, institutional investors, and decentralized autonomous organizations (DAOs). Reports of security breaches often underscore the importance of such robust custodial solutions for preventing unauthorized access. Its implementation is a key indicator of enhanced asset protection in the crypto space.
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