What is multi-signature wallet?

What Is Multi-Signature Wallet?

A multi-signature (multisig) wallet requires more than one private key to approve a transaction. For example, 2 of 3 keys must sign. This can protect against a single point of failure (one key stolen or lost) and is used by teams or for high-value storage. Setting up and using multisig is more complex. It is useful when you need shared control or extra security. Not all wallets support it; it is more common for Bitcoin and Ethereum. Understand the recovery process (e.g. who holds the keys) before moving large amounts.