How Does a Multisig Wallet Increase the Governance Overhead?

A multisig wallet increases governance overhead by requiring multiple key holders to be available and agree to sign every single transaction, even routine ones. This introduces latency, as the process is no longer instantaneous.

For critical actions, coordinating multiple geographically dispersed individuals to sign a transaction can be slow and cumbersome. This overhead is a necessary trade-off for the increased security, as it forces deliberation and prevents hasty, unilateral decisions.

How Does a Multi-Signature Wallet Work on the Bitcoin Blockchain?
How Does a DAO (Decentralized Autonomous Organization) Use Multisig Wallets for Governance?
How Does Key Rotation Mitigate the Risk of a Compromised Key in a Multisig Wallet?
What Is a Multisignature (Multisig) Wallet and How Does It Mitigate Key Compromise Risk?
What Is the Difference between a Multisig Wallet and a Single-Signature Wallet?
How Does a Multisig Wallet Differ from a Standard Single-Key Crypto Wallet?
How Does the Transaction Validation Process Differ between Single-Sig and Multisig?
What Is a ‘Multisig’ Wallet and How Does It Enhance Security?

Glossar