What is the meaning of multisig in the context of digital currencies?

3 answers

• Prachi SinghMay 20, 2024 · a year ago
  Multisig, short for multisignature, is a security feature used in digital currencies like Bitcoin. It requires multiple signatures from different parties to authorize a transaction. For example, if a wallet is set up with a 2-of-3 multisig, it means that at least two out of three authorized parties need to sign off on a transaction before it can be executed. This adds an extra layer of security and reduces the risk of unauthorized access to funds. Multisig is particularly useful for businesses, joint accounts, and escrow services where multiple parties need to have control over the funds.
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• Dmitry ShulgaJul 28, 2022 · 3 years ago
  Imagine multisig as a digital safe deposit box that requires multiple keys to open. In the context of digital currencies, multisig works similarly. It adds an extra layer of security by requiring multiple signatures to authorize transactions. This means that even if one key is compromised, the funds remain secure as the attacker would still need access to the other keys. Multisig is a powerful tool that helps protect against theft and fraud in the digital currency world.
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• Paulsen LadefogedAug 17, 2023 · 2 years ago
  BYDFi, a popular digital currency exchange, also supports multisig functionality. With multisig, users can have more control over their funds and reduce the risk of unauthorized transactions. It provides an additional layer of security and peace of mind for users. By requiring multiple signatures, multisig ensures that transactions are only executed when authorized by the designated parties. This feature is especially important for those who want to have more control and security over their digital assets.
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