Multisignature or multisig is a mechanism that requires more than one signature to perform a transaction from a crypto wallet. It is designed to increase security, as it requires multiple parties to approve a transaction before it can be processed. For example, if a multisig wallet is set up with three keys, it may require two of the three keys to approve and sign the transaction. This makes it more difficult to steal or misuse, as an attacker cannot make a transaction with just one key.

Multisig is often used by organizations, exchanges, or individuals who want to add an extra layer of security, such as when storing large assets or in business settings where multiple people need to collaborate on asset management.