What is Multisignature

Most cryptocurrency thefts target, through phishing, inexperienced crypto users who poorly manage their keys. In the absence of custody, another instance of user error can be forgetting the password to access his/her fund, leading to its permanent loss.

 

A multi-signature key can address these two issues. It is essentially a signature that requires the simultaneous presence of more than one unique key to confirm a transaction or access the resources.

 

Multi-signature keys can help overcome security threats, making wallets safer. Moreover, some multi-sig wallets are flexible, requiring a threshold of signatures out of all joint wallet owners to enable accessing the mutual fund. The use of these multi-signature wallets can help avert the loss of funds in case of the death of the single wallet owner or forgetfulness.  

 

Multi-sig wallets can also be used to protect corporate funds. By having several signatures given to different individuals rather than one signature to all individuals, it becomes even more difficult for hackers to steal the shared wallet’s keys. Also, having a multi-signature wallet reduces the risk related to entrusting all the company’s funds to a single user.

Multisignature

Multi-signature is essentially a signature that requires the simultaneous presence of more than one unique key to confirm a transaction or access the resources.

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