What is multisig?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Multisig requires more than one signature to move funds, so a single leaked key is not enough to lose them. It is more resilient than single-key custody and is the standard approach for company and DAO treasuries.
Key points
- Spending requires several signatures
- One leaked key is not enough to lose the funds
- Losing one key is survivable if the threshold still clears
- A misconfigured setup can lock you out too
Definition
An arrangement in which a transfer executes only when signatures from a required number of predefined keys are present.
A typical configuration is 'two of three'. An attacker holding one key cannot spend, and you losing one key does not lock you out either. Single-key custody carries both failure modes at once; multisig softens both.
In practice the keys are held in separate places or by separate people. Companies give each signer a key so that spending needs a quorum, and DAO treasuries execute only once a proposal passes and enough signers act.
The cost is operational complexity. Set the threshold too high and losing contact with one signer freezes the funds. The safe sequence is to document the recovery procedure, rehearse a restore with a small amount, and only then move the real balance.
Watch out for
- · Too high a threshold means one unreachable signer freezes everything
- · Changes to the contract or service you rely on can affect your configuration
- · Rehearse recovery with a small amount before moving real funds