A multi-signature contract, often referred to as a multi-sig, is a type of digital agreement that requires more than one private key to authorize a transaction. This means that multiple parties must agree before any funds can be moved.In practice, multi-signature setups can take various forms. For example, an agreement might require two out of three designated signers to approve a transaction. This adds a layer of security, as it reduces the risk of unauthorized access or theft. If one key is compromised, the funds remain secure because additional keys are needed for access.Multi-signature contracts are commonly used for joint accounts, where multiple individuals or organizations need to manage funds together. They enhance trust among participants, making it clear that no single party has total control. This feature is particularly useful for businesses, partnerships, or groups that want to maintain accountability and transparency in their financial dealings.