Multi-Sig Wallets Explained

What Multi-sig wallets are and why they are important

Multi-signature often referred to as ‘multi-sig’ is a form of technology that provides additional security for cryptocurrency transactions. Essentially it means that spending cryptocurrency requires more than one approval or sign-off for the transaction to go ahead.

Multi-sig in a non-digital context

A couple has decided to sell their apartment, let’s call this couple Steve & Sarah. They both legally co-own the apartment, and in order for the apartment to be sold and the ownership to be transferred to the new buyer, both Steve and Sarah have to give their approval of the transaction by signing their signature on the sale contract.

This means that Sarah cannot just sell the apartment behind Steve’s back, as she would require Steve’s authorisation to complete the sale. Similarly, Steve cannot sell the apartment without Sarah’s consent to buy EOS #whenlambo…

Multi-sig in a digital context

In this scenario, imagine that Steve & Sarah own a shared credit card, which their daughter Laura also has access to. Laura is able to spend freely buying what she wishes, with her parents unaware of the transactions until they have taken place. The money…