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Multisig Wallet

Web3 Infrastructure • Tools • Interfaces

Multisig Wallet (short for multi-signature wallet) is a type of cryptocurrency wallet that requires multiple private keys to authorize a transaction, rather than a single signature. This adds an extra layer of security and is commonly used by organizations, DAOs, and individuals who want shared control over funds. For example, a 2-of-3 multisig setup requires any two of three key holders to approve a transaction.

Use Case: A DAO treasury stores its reserves in a 3-of-5 multisig wallet to ensure no single member can unilaterally move its gold-backed tokens.

Key Concepts:

Wallet Type Control Security Level Best For
Multisig Wallet Requires multiple signatures Very High DAOs, shared treasuries, joint accounts
Hardware Wallet Single private key on device High Long-term cold storage
Custodial Wallet Third-party holds keys Low Exchanges, beginners
Self-Custody Wallet User holds keys directly Medium to High Everyday DeFi and trading

 
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