Multisig is an acronym for Multi Signature, a security technology used on the Internet.
It provides greater security than information that can be protected with a single private key (single-sig).
Unlike a regular bitcoin address, a multi-signature address requires multiple signatures in order to send bitcoins.
The number of signatures required is expressed as a fraction, such as “2/3”. In this case, the number of signatures required is expressed as a fraction, such as “2/3,” which means that the address must be signed with two of the three pre-made private keys.
Pros and Cons of Multi-Sig
The advantage of multi-sig is that it provides much higher security than single-sig. In the case of single-sig, if a user’s device is hijacked or a password is leaked, the private key can be easily known. The moment the private key is lost, access to Bitcoin is lost.
With multi-sig, even if one of the three private keys is compromised, the cryptocurrency will not be stolen unless another one is compromised. With the other two private keys, it is possible to access the cryptocurrency yourself.
However, the disadvantage of increased security is that it is cumbersome to manage. There are also additional fees for setting up and transferring money due to the complexity of the function.