Multisig, short for multi-signature, is a crypto walletCrypto walletAn app or device that holds the keys to your crypto and lets you receive, store and send it. set-up where more than one private keyPrivate keyA secret number that proves you own the crypto in your wallet. Whoever holds the private key controls the crypto. has to approve a transaction. People often talk about "2-of-3": there are three keys, and any two of them must sign to send crypto.
How does multisig work?
It is like a company account where two people have to approve every payment. No one person can move the money alone, but the business doesn't grind to a halt when someone is on holiday.
In a 2-of-3 set-up, you might keep one key in a hardware walletHardware walletA small device that keeps private keys offline and signs transactions inside the device, so the keys never reach your computer or phone. at home, another somewhere else and the third with someone you trust. If one key is lost or stolen, the crypto is still safe and still within reach.
On the Bitcoin network, multisig is built into the system. On Ethereum, it is done with a smart contractSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met.. Either way, the rule is recorded on the blockchain and anyone can see that several signatures were needed.
When does multisig make sense?
- Companies and organisations, so no single employee can move funds alone.
- Large amounts in self-custody, so one lost or stolen key doesn't mean a loss.
- Families, for example to make inheritance easier.
The downside is that the set-up is more complex and mistakes can be costly. If too many keys are lost, say two out of three, the crypto is locked for good. To restore the wallet, you also need details of the set-up itself, not just the keys.
Multisig is related to MPCMPC (multi-party computation)A technique that splits a private key into shares on separate systems, so transactions are signed jointly without the full key existing anywhere., but with MPC a single key is split into shares and the network only sees one signature.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.