Definition
A multi-sig wallet is a type of cryptocurrency wallet that uses multiple cryptographic keys to control access to funds instead of relying on a single private key. It is configured so that a predefined number of signatures from different key holders must approve a transaction before it can be executed on the blockchain. This structure turns transaction authorization into a shared responsibility, making it harder for a single compromised key or individual to move funds unilaterally. Multi-sig wallets are commonly used for higher-value holdings, shared accounts, and organizational crypto management.
Technically, a multi-sig wallet is defined by a rule such as “M-of-N,” where N is the total number of keys and M is the minimum number of signatures required to approve a transaction. The wallet’s logic is enforced by the underlying blockchain protocol or smart contract, ensuring that transactions that do not meet the signature threshold are rejected. This design can be applied to both software and hardware-based setups and can coexist with other security practices, such as using a cold wallet or hardware wallet for key storage. As a concept, multi-sig focuses on governance and control over a wallet rather than on how keys are physically stored.
Context and Usage
In practice, a multi-sig wallet is often used as a shared Wallet for groups, companies, or project teams that want collective control over crypto assets. For example, a Treasury holding funds for a protocol or organization may be structured as a multi-sig so that several designated signers must approve any outgoing transaction. This reduces reliance on a single person and aligns on-chain control with off-chain governance decisions. The multi-sig model can also be used in personal setups, such as distributing keys across multiple devices or trusted parties to reduce individual custody risk.
Multi-sig wallets are conceptually distinct from where or how keys are stored. A cold wallet or hardware wallet can hold one or more of the keys that participate in a multi-sig arrangement, adding physical or offline protection on top of the multi-signature requirement. The defining feature of a multi-sig wallet remains the enforced requirement for multiple independent approvals, which enhances resilience against key loss, theft, or coercion. As a result, multi-sig has become a foundational security and governance primitive in the broader crypto ecosystem.