Multisig wallet
A cryptocurrency wallet that requires multiple private-key signatures to authorize a transaction, rather than a single key.
A typical multisig is described as M-of-N: M signatures are required out of N total keys. A 2-of-3 multisig requires any 2 of 3 keyholders to approve a transaction. This eliminates single-key compromise as a complete attack vector — losing or having one key stolen doesn't lose funds.
Multisigs are standard for treasury management. DAOs, protocols, exchanges, and custodians use them to distribute key control across executives, founders, or board members. Gnosis Safe is the dominant Ethereum multisig implementation; Bitcoin has native multisig via P2SH and P2WSH addresses.
Trade-offs: multisig transactions are larger and cost more gas (each signature is data on-chain). Coordinating signatures across multiple keyholders is operational overhead. Some designs (threshold signatures, MPC) achieve similar security with smaller transactions but more cryptographic complexity.
Multisig is the standard for securing large balances and protocol treasuries. Most major protocol exploits would have been mitigated by proper multisig governance over admin keys.
How CryptoRadar24 tracks it
CryptoRadar24 references multisig structure when reporting on protocol security incidents or treasury management decisions.
Related terms
FAQ
How does a multisig protect funds?
No single key can move funds. To attack, you must compromise multiple keyholders simultaneously — exponentially harder than attacking one. Lost or stolen single keys don't lose funds as long as you control at least M of N.
What's the most common multisig setup?
2-of-3 for individual treasuries (you, lawyer, recovery service). 3-of-5 or higher for protocol treasuries, distributing keys across multiple founders or board members.
Are multisigs hackproof?
They reduce single-point-of-failure risk but are not invincible. Recent attacks have exploited social engineering of keyholders or smart-contract bugs in the multisig implementation itself.
Can a multisig be on-chain or off-chain?
Both. On-chain (Gnosis Safe, P2SH) is most common — the multisig logic is enforced by the blockchain itself. Off-chain MPC multisigs split a single key cryptographically; same security model, different mechanics.