What Is a ‘Multisig’ Wallet and How Does It Enhance Security?

A multisig (multi-signature) wallet requires two or more private keys to authorize a transaction, instead of a single key. For example, a 2-of-3 multisig requires any two of three keys to move funds.

This structure significantly enhances security by preventing a single point of failure. If one key is compromised, the funds remain safe.