Multi-Signature (Multi-Sig)

What Is Multi-Signature (Multi-Sig)?

Multi-Signature (Multi-Sig) is a type of digital signature that requires more than one key to authorize a transaction. It is used in cryptocurrency transactions and other types of online financial transactions as an additional layer of security. Multi-sig wallets require multiple private keys from different users before any funds can be transferred or spent, making it much harder for hackers to steal money. This makes multi-signature technology ideal for businesses and organizations who need extra protection against fraud or theft.

The process works by having each user sign the transaction with their own unique private key, which then creates a single combined signature that must be verified by all parties involved in order to complete the transaction. The number of signatures required depends on how many people are involved in the transaction; typically two or three signatures are needed but this can vary depending on the situation. By requiring multiple signatures, multi-signature technology ensures that no single person has control over all funds and provides added assurance that only authorized individuals have access to them.

See also  TRC-10 (TRON)

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