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Multisig: a wallet that needs several keys

Multisig (multi-signature) is a wallet arrangement where spending a transaction requires several keys to sign, not just one. A common form is two-of-three: any two of three keys can spend, so losing one key does not lose the funds and stealing one key does not move them.

At a glance

What it is
A wallet that needs several keys to authorise a spend
Common form
Two-of-three: any two of three keys can sign
Why use it
No single key can lose or steal the funds on its own
The cost
More keys to keep, back up, and coordinate
Comparison

Single-key versus multisig

Single-key wallet
Multisig (e.g. two-of-three)
Keys to spend
One
Several, by a set rule
Lose one key
Funds may be lost
Funds safe if enough keys remain
One key stolen
Funds can be taken
Not enough to spend on its own

What is multisig?

Multisig is short for multi-signature. An ordinary wallet has one key: hold it, and you can spend. A multisig wallet has several keys and a rule about how many must sign before a transaction is valid. The usual shape is two-of-three: three keys exist, and any two of them together can authorise a spend. One key alone cannot.

Why would you use it?

A single-key wallet has a single point of failure. Lose that key and the funds are gone. Let someone steal it and the funds are theirs. Multisig removes that knife-edge. In a two-of-three setup, you can lose one key and still recover with the other two, and a thief who grabs one key still cannot move anything, because one signature is not enough.

That safety is not free. You now have several keys to generate, store in different places, and back up, and every spend means coordinating more than one device to sign. The flow is more involved, and the recovery flow especially is something to rehearse while nothing is at stake, not in a panic later. Multisig is worth the overhead once the amount being protected justifies it; for small day-to-day balances, a single key is usually enough.

Multisig gives you

  • No single point of failure: one lost or stolen key is survivable
  • A spend rule you set, like requiring two of three signers
  • Resistance to a single device being compromised

Multisig costs you

  • More keys to generate, store, and back up safely
  • More coordination: a spend needs several devices to sign
  • A more involved recovery flow you must test before you need it

Related terms

← All terms Reviewed: June 2026