Definition
Multi-Signature. A security configuration requiring multiple private key signatures to authorize a transaction. Common formats are 2-of-3 (two of three keys required) or 3-of-5.
Why It Matters
Multi-sig dramatically reduces single points of failure. It protects against one key being stolen, lost, or compromised — essential for organizations and serious crypto security.
Example
A DAO treasury uses a 3-of-5 multi-sig wallet. Any transaction requires 3 out of 5 designated key holders to sign — preventing any single person from draining the treasury.
Related Terms
Wallet
Private Key
DAO
Security