Multisignature
MultisignatureMultisignature, also known as multisig, is a security feature used in cryptocurrencies that requires multiple people or parties to sign off on a transaction before... More, also known as multisig, is a security feature used in cryptocurrencies that requires multiple people or parties to sign off on a transaction before it can be completed. This is done by creating a multi-signature addressString of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key. More that requires multiple private keys to approve a transaction. The number of required signatures can vary, but is typically 2-3.
Multisignature is used by exchanges, wallets, and other services to provide an extra layer of security to user’s funds. This can prevent theft or unauthorized access, as multiple parties must agree to a transaction before it can be executed.
Two specific examples of multisignature technology include:
- BitGo: A popular cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... More walletA cryptocurrency wallet is a digital wallet that is used to store, send, and receive cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. It's similar to... More and custodian that offers multisignature wallets for their clients. BitGo allows users to create custom multi-signature policies that can be tailored to their specific needs.
- Blockstream Green: A mobile wallet that supports multisignature transactions. Blockstream Green offers 2-of-2 and 2-of-3 multisig options for users, allowing them to choose the number of signatures required to complete a transaction.