A multisignature wallet, often called a multisig wallet, requires multiple signatures before a transaction can be executed. This setup enhances security by ensuring that no single person has full control over the funds. Instead, a predefined number of signatures from a group of users is needed to authorize a transaction.For example, a wallet might be configured to require three out of five potential signers to approve any transaction. This is useful for organizations or partnerships where collaborative decision-making is essential. It adds a layer of protection against theft or loss, as a hacker would need access to multiple keys to steal funds.Multisig wallets can also facilitate accountability and transparency in shared accounts. They can be used for various purposes, including corporate accounts, joint accounts among friends, or to manage funds for charitable organizations. By distributing control across multiple parties, multisig wallets help mitigate risks associated with individual access and enhance the overall security of digital assets.