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Blockchain & Crypto vocabulary · Wallets & Keys

Multisig

Meaning in blockchain & crypto, with examples

/ˈmʌl.ti.sɪɡ/nounCommon term

In blockchain & crypto, multisig means: Short for multi-signature: a wallet setup that needs approval from several private keys, such as 2 of 3 or 3 of 5, before a transaction can be sent.

In Turkish: çoklu imza, çoklu imzalı cüzdan

How it is used

Used by companies, funds and DAOs to protect their treasuries, so that one stolen key or one dishonest person cannot move the money. People talk about a 2-of-3 multisig, the signers of a multisig and setting up a multisig. It also works as an adjective: a multisig wallet.

Example sentences

  1. The treasury sits in a 3-of-5 multisig, so no single founder can move the funds.

  2. We need two more signatures on the multisig before the payment can go out.

Common collocations

  • multisig wallet
  • 2-of-3 multisig
  • set up a multisig
  • multisig signers
  • private keyA secret number that proves you own a wallet and lets you sign transactions. Anyone who has the private key can move the funds, so it must never be shared.
  • cold walletA wallet whose private keys are kept completely offline, for example on a hardware device or on paper, so that hackers cannot reach them over the internet.
  • DAOShort for decentralized autonomous organization: a group whose rules are written in smart contracts and whose members vote on decisions, usually with governance tokens.
  • self-custodyKeeping your crypto in a wallet where you alone hold the private keys or seed phrase, instead of leaving it with an exchange or another company.
  • hardware walletA small physical device, often similar to a USB stick, that stores private keys offline and signs transactions inside the device, so the keys never touch an internet-connected computer.

More terms: Wallets & Keys

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