What is a Multisignature (MultiSig) Wallet? – Bitcoin Magazine


What is a MultiSig wallet?

A multisig wallet is a wallet that provides users with extra security because it requires multiple unique signatures (hence multi-signature) to authorize and execute a transaction. A traditional — or single-sig — Bitcoin wallet contains a Bitcoin address, each with one associated private key that grants the keyholder complete control over the funds.

With bitcoin multisignature addresses, you can have a Bitcoin address with three or more associated private keys, such that you need any two of them to spend the funds. A wallet’s private key grants access to a user’s funds. It proves ownership of your bitcoin and is necessary to execute transactions in combination with a public key. If a private key is lost, all funds are lost, and there is no way to recover them. Spreading access to a wallet across multiple keys is a safer measure.

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