What is Multisignature wallet?
A wallet that needs several keys to approve a transaction, removing a single point of failure.
A 3-of-5 multisig means any three of five key-holders can move funds. It protects against one stolen key and, if the holders are independent, against one person turning hostile.
It is only as strong as the signers' independence. Five keys on one laptop is one key.
Related terms
- Admin key / upgrade keySecurity
The privileged control that can upgrade, pause or drain a contract.
- WalletWallets
Software or hardware that holds keys and signs transactions; it does not hold coins.
- Cold storageSecurity
Keeping keys offline on a device that never connects to the internet.