Multisignature (Multisig)

Multisignature refers to a digital signature that can be formed only through the fusion of several other unique digital signatures. Cryptocurrency wallets utilize multisignature to provide a complex layer of security that requires two or more signatures before any transaction is authenticated.

Single-key wallets can often be compromised because it only has a single point of failure. An attacker only needs access to one private key in order to take control of one’s wallet in such cases.

On the other hand, multisignature wallets make sure that before any transaction is authorized, two independent signatures have to first be provided. This lowers the risks of successful wallet attacks since it requires multi-layered approval before each transaction goes through.