Multisignature Meaning

Multisignature (or multisig) is the specific digital signature scheme that allows a group of users to sign a single document (or transaction). It is the cryptographic primitive that makes Multi-Signature Wallets possible.

In Bitcoin, this is enabled by P2SH (Pay to Script Hash) addresses, which allow for complex spending conditions. A standard transaction requires one valid signature matching the public key.

A multisignature transaction requires M signatures out of a group of N public keys. This script is validated by the network miners.

If the script says "Give me 2 signatures out of 3," and you only provide 1, the network will reject the transaction as invalid. This technology is fundamental to institutional crypto custody.

It allows for the separation of duties and geographic distribution of trust. It ensures that no single compromised device or coerced individual can authorize a transfer of funds, providing a layer of security that traditional passwords simply cannot match.