Multisig Wallet

A multisig wallet, short for multi-signature, requires several private keys to approve a transaction before it can be broadcast, for example two of three or three of five. The rule is enforced by the protocol or by a smart contract rather than by a company policy, so no single key holder can move funds alone and losing one key does not lock the wallet. Teams, DAOs and treasuries use multisig to split control between people or devices; individuals sometimes spread keys across separate locations. The costs are complexity and higher fees: setup, signer coordination and recovery are harder, and every signer still has to keep their own key safe. Poorly configured multisig contracts have been exploited.