Does Multi-Sig Increase the Operational Risk of a Transaction? ⎊ Path

Does Multi-Sig Increase the Operational Risk of a Transaction?

Yes, multi-sig inherently increases the operational risk and complexity of a transaction. Each transaction requires coordination among multiple key holders and the successful execution of multiple signing steps.

This increases the time required for a transaction and introduces more points where a human error or procedural failure could occur, potentially leading to a transaction failure or delay.

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Glossar

Operational Risk

Framework ⎊ Operational risk within cryptocurrency, options trading, and financial derivatives transcends traditional financial definitions, demanding a framework that explicitly incorporates technological, regulatory, and idiosyncratic elements.