What Is a ‘Multi-Signature’ (Multisig) Address?
A multi-signature (multisig) address is a type of Bitcoin address that requires more than one private key to authorize a transaction. For example, a 2-of-3 multisig requires any two of the three designated private keys to sign a transaction.
This enhances security by eliminating a single point of failure and is commonly used for joint accounts, escrow services, and cold storage to distribute control.
Glossar
Decentralized Finance (DeFi)
Architecture ⎊ Decentralized Finance (DeFi) represents a fundamental shift in financial systems, constructing open-source protocols and smart contracts on blockchain networks, primarily Ethereum, to replicate traditional financial instruments without intermediaries.
Multisig Address
Security ⎊ A multisig address, fundamentally, represents a cryptographic construct requiring multiple private key authorizations to execute a transaction, mitigating single points of failure inherent in standard single-signature schemes.