Glossary · Custody & Security
Multisig
Also: multisignature, multi-signature wallet
Published
Multisig — A multisig wallet is an on-chain arrangement in which a transaction is valid only when signed by a required number of independent private keys out of a defined set, such as two of three. The rule is enforced by the blockchain's script or smart contract, so every participating key remains a complete key held by its owner.
How It Works
The wallet's address encodes a rule: which public keys are allowed to sign and how many signatures are required. To spend, the required signers each sign the transaction with their own key, and the network validates that the threshold is met. Because the rule lives on-chain, it is transparent and independently verifiable, and it cannot be changed without moving the funds to a new address with a new rule.
Strengths and Limits
Multisig removes the single point of failure with mature, well-understood tooling on the chains that support it natively. Its limits are structural. The policy is visible on-chain, transaction size and fees grow with the number of signatures, and support varies by chain; some networks have no native multisig, and smart-contract implementations carry their own risk. Changing signers requires an on-chain migration.
Multisig or MPC
Institutions choose between multisig and multi-party computation on chain coverage, operational flexibility, and privacy of policy. Both achieve distributed control. MPC produces a standard single signature and works across chains; multisig keeps each key whole and its rule verifiable by anyone.