DefineDeFiWeb3 Glossary

Multisig Wallet

A wallet that needs multiple people to approve transactions. Like a bank vault that requires several keys to open.

Example

A DAO treasury requiring 3 out of 5 leaders to approve any spending over $100,000, preventing any one person from taking funds.

Related Terms

Tools & Protocols
Multisig Wallet FlowShows how multiple signatures are required to authorize transactionsMultisig: Multiple Keys RequiredExample: 3-of-5 multisig (need 3 signatures from 5 possible signers)Authorized Signers👤✓Alice👤✓Bob👤✓Carol👤Dave👤EveThreshold3 of 5signatures neededStatus3 / 3 ✓Ready!🔐 Multisig WalletSafe, Gnosis, etc.$10,000,000 TreasuryEXECUTED✓Tx sent!Why Multisig?🔒 No single point of failure👥 Shared control✓ Reduced insider risk

⚙️How It Works

  1. 1

    Setup

    Create wallet with N owners and M required signatures (e.g., 3-of-5)

  2. 2

    Propose

    Any owner can propose a transaction to be executed

  3. 3

    Sign

    Other owners review and add their signatures if they approve

  4. 4

    Execute

    Once threshold is met, anyone can execute the transaction

📊Key Numbers

$100B+
Safe (Gnosis) TVL
secured in multisigs
3-of-5
Common Setup
typical threshold config
90%+
DAO Treasuries
use multisig wallets

🚀Getting Started

  • 1Use established providers like Safe (formerly Gnosis Safe)
  • 2Choose trustworthy co-signers you can reliably contact
  • 3Set threshold high enough for security but not too high for convenience
  • 4Consider geographic distribution of signers for disaster recovery
  • 5Test with small amounts before moving significant funds
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