Frequently Asked Questions
A multi-signature wallet is a type of crypto wallet that requires two or more private keys to authorize a transaction, enhancing security by distributing access among multiple users or devices.
Multi-sig wallets use a M-of-N scheme—meaning that out of N total keys, at least M keys must approve a transaction. For example, in a 2-of-3 wallet, any two of the three key holders must sign for a transaction to go through.
Multi-sig wallets provide added security against theft, fraud, or accidental loss by requiring multiple approvals.
- Joint accounts
- Corporate treasury management
- DAO and DeFi protocol governance
Yes, they are more secure than single-key wallets, as a single compromised key isn’t enough to steal funds. However, security depends on key management and proper setup.
Popular cryptocurrencies that support multi-sig functionality include:
- Bitcoin (BTC)
- Ethereum (via smart contracts)
- Litecoin
- Dash
- Polkadot (via multisig pallets)
Wallet support varies by network, so always verify compatibility.
