What Is a Multi-Signature (Multisig) Wallet and Its Security Benefit?

A multi-signature (multisig) wallet is a type of cryptocurrency wallet that requires multiple private keys to authorize a transaction, rather than just one. Its primary security benefit is the elimination of a single point of failure.

For example, a 3-of-5 multisig requires 3 out of 5 designated key holders to approve a transaction. This is crucial for securing large treasuries or critical contract ownership, as it prevents any single compromised or malicious individual from unilaterally draining funds or changing contract parameters.