This is a special kind of digital signature that is a combination of several unique alphanumeric codes. This allows two or more users to access the same wallet using exclusively their unique digital signatures. For the first time, people started talking about this technology in 2012, in the context of increasing the security of Bitcoin blockchain wallets, but it took another year before the technology was put into practice.
Most often, however, access is granted only with the simultaneous activation of both access codes. This increases the security of information storage and reduces the risk of misuse of funds by one of the parties.
A simple comparison is a deposit box in a bank that opens when you turn two keys at the same time. The first - from one owner, the second - from the second or someone from the bank's trustworthy staff. The only way to get at your disposal is through joint action.
In addition, the presence of several digital signatures necessary to obtain information increases its resistance to hacking. Even if attackers use phishing methods manage to get hold of one digital signature, this will still not be enough to withdraw funds from a cryptocurrency wallet protected by multisig technology.
In addition, the ability to distribute access keys to a single source of funds is useful for large corporations. This ensures that none of the dignitaries will be able to single-handedly seize the finances, and the decision on what to spend money on will be made by the majority.
The use of “multisig” significantly increases the security of cryptocurrency wallets, as well as the reliability of transactions and the effectiveness of collegial decision making. Therefore, in the context of cryptocurrency, this technology will continue to actively develop.