A multi-signature account, often referred to as a multi-sig account, requires more than one private key to authorize a transaction. This adds an extra layer of security compared to standard wallets that typically need just one key.In a multi-signature setup, multiple parties hold their own keys. For instance, a 2-of-3 multi-sig account means that out of three holders, any two must approve a transaction. This setup is useful for organizations or groups where shared control of funds is necessary, helping to prevent unauthorized access and reduce the risk of theft.Multi-sig accounts can also be employed for backup purposes. If one key is lost or compromised, the remaining keys can still access the funds, making it highly resilient to individual key failures.Overall, multi-signature accounts enhance security and encourage collaborative management of funds, making them a valuable tool for both individuals and organizations.