TECHNICAL CONCEPTS
Multisig (Multi-Signature Wallet)
Definition
A multisig wallet requires multiple signatures (keys) to authorize transactions, providing enhanced security over single-key wallets. Commonly used for protocol governance and treasury management.
Example
Example
A 3-of-5 multisig requires at least 3 out of 5 designated signers to approve any transaction.
Risks to Consider
Risks
- Key loss
- Coordination complexity
- Single points of failure
Common Questions
What happens if multisig signers are unavailable?
If you can't reach the minimum threshold, funds become inaccessible. This is why backup plans and trusted signers are crucial.
