Multi-signature transactions require multiple private keys to authorize a transaction. Instead of relying on a single key, this method increases security by requiring approval from two or more parties before funds can be moved. Typically, a multi-signature wallet can be set up to require a specific number of signatures out of a total number of keys. For example, a 2-of-3 multi-signature wallet means that two out of three designated key holders must sign off on a transaction. This setup is beneficial for collaborative accounts, corporate accounts, or shared wallets, helping to prevent unauthorized access.The use of multi-signature transactions enhances security and trust among multiple users. It reduces the risk of theft or loss since a single compromised key is not sufficient to access the funds. Additionally, it can be used to implement rules for disbursement, making it easier to manage shared financial responsibilities. Overall, multi-signature transactions are an effective way to provide an added layer of protection and accountability in managing cryptocurrency funds.