What is Multi-Signature Wallet?. A multi‑signature wallet requires multiple approvals to move funds. No single key can spend alone.
How it works
Policies like 2‑of‑3 or 3‑of‑5 distribute control across devices or people. Transactions execute only after the threshold is met.
Why it matters
Multisig reduces single‑point failures for treasuries and family custody plans.
Common pitfalls
- Not testing recovery paths
- Keeping all keys in one location
- Setting thresholds that halt operations if a signer disappears
Quick example
A DAO treasury uses a 3‑of‑5 multisig so funds cannot move without broad consent.
See also
- Seed Phrase
- Hardware Wallet
- Custody
TL;DR: What is Multi-Signature Wallet? defined in plain English with practical next steps.
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