The term 4-of-7 refers to a type of multisignature (multisig) wallet arrangement. In this case, seven keys are created, and a minimum of four keys is required to authorize a transaction. This setup enhances security by distributing control among multiple parties.For instance, in a business setting, the keys might be held by different executives. Requiring four out of seven to sign off means that not any single individual can unilaterally access the funds, preventing misuse and reducing the risk of loss from a compromised key.This arrangement is useful for organizations that want to strike a balance between accessibility and security. By spreading authority across several individuals, it minimizes the chances of fraud while still allowing for efficient operation. Overall, 4-of-7 is a practical way to safeguard assets in a collaborative environment.