What is a multi-signature wallet？
A multi-signature wallet, also known as a multisig wallet, is a type of cryptocurrency wallet that requires multiple parties to approve a transaction before it can be executed. This provides an additional layer of security and helps to protect against unauthorized access and fraud.
In a multisig wallet, the private keys that control access to the wallet and authorize transactions are held by multiple parties, typically two or three. For example, a company might use a multisig wallet with three private keys, one held by the CEO, one by the CFO, and one by a trusted third-party.
Before a transaction can be executed, a specific number of private keys must be provided to authorize the transaction. This number is predetermined by the wallet's configuration and can be adjusted based on the sensitivity of the transaction and the level of security required.
Multisig wallets are commonly used by organizations that need to manage and secure large amounts of cryptocurrency, such as exchanges, custodians, or investment funds. They are also used by individuals who want to mitigate the risk of losing their private keys or falling victim to hacking attempts.
By requiring multiple parties to sign off on transactions, multisig wallets provide an additional layer of security and reduce the risk of unauthorized access or theft. However, they can also add complexity to the process of managing and executing transactions, as multiple parties must coordinate and approve each transaction.
In a multisig wallet, the private keys that control access to the wallet and authorize transactions are held by multiple parties, typically two or three. For example, a company might use a multisig wallet with three private keys, one held by the CEO, one by the CFO, and one by a trusted third-party.
Before a transaction can be executed, a specific number of private keys must be provided to authorize the transaction. This number is predetermined by the wallet's configuration and can be adjusted based on the sensitivity of the transaction and the level of security required.
Multisig wallets are commonly used by organizations that need to manage and secure large amounts of cryptocurrency, such as exchanges, custodians, or investment funds. They are also used by individuals who want to mitigate the risk of losing their private keys or falling victim to hacking attempts.
By requiring multiple parties to sign off on transactions, multisig wallets provide an additional layer of security and reduce the risk of unauthorized access or theft. However, they can also add complexity to the process of managing and executing transactions, as multiple parties must coordinate and approve each transaction.
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