How Does a Multisig Differ from a Hardware Wallet?
A multisig wallet is a smart contract or protocol that requires multiple independent private keys to authorize a transaction. Its security is based on distributed trust and consensus.
A hardware wallet is a physical electronic device that securely stores a single private key offline. Its security is based on isolation from the internet and a secure element.
A common security practice is to use a multisig wallet where each required key is stored on a separate hardware wallet.
Glossar
Multisig Wallet
Custody ⎊ A multisig wallet, within the context of cryptocurrency, options trading, and financial derivatives, represents a significant advancement in asset safeguarding, distributing control across multiple private keys.
Hardware Wallet
Meaning ⎊ A Hardware Wallet is a physical electronic device specifically engineered to store a user's private cryptographic keys in an offline, secure element, isolating them from internet-connected computers and potential malware.
Independent Private Keys
Key ⎊ This is the secret cryptographic material, typically a large integer, that grants exclusive, unchallengeable control over the associated digital assets or the ability to sign transactions on a blockchain.