Multi-signature wallet (Multisig)

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A multi-signature wallet, commonly referred to as a multisig wallet, is a type of cryptocurrency wallet that requires more than one private key to authorize a transaction. Instead of a single person having sole control over the funds, a multisig wallet distributes control among multiple parties. For example, a 2-of-3 multisig wallet would require two out of three designated signatories to approve any outgoing transaction.

This mechanism significantly enhances security by eliminating single points of failure, meaning if one private key is compromised, the funds remain secure as long as the other required keys are not. Multisig wallets are widely used for various purposes, including corporate treasury management (requiring approval from multiple executives), escrow services (where a third party can mediate disputes), and by individuals seeking to improve their personal asset protection against theft or loss of a single key.

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