How it works
Multisig can reduce dependence on one key and is often used by teams, treasuries or individuals who want stronger recovery and authorization controls.
What to check
Check the signing threshold, who holds each key and what happens if one signer becomes unavailable. Recovery design should be documented before funds are deposited.
- Define signer roles
- Document recovery rules
- Avoid storing all keys together
Limits and risks
Poorly designed multisig can create new failure modes, including deadlock, signer collusion or loss of enough keys to make assets inaccessible.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.