A multisig, or multi-signature, wallet is one that requires several keys to approve a transaction rather than just one. A common setup is described as two-of-three, meaning three keys exist and any two of them must sign before funds can move. This spreads control so that no single key is a single point of failure.
The benefit is security and shared control. If one key is lost or stolen, funds are still safe, because a thief with just one key cannot act alone. Businesses often use multisig so that no individual can move company funds unilaterally, and some individuals use it to protect large personal holdings.
The trade-off is added complexity. Setting up and using multisig takes more effort, and you must keep track of multiple keys and who holds them. For everyday small amounts it is often more than needed, but for high-value or shared funds it offers meaningful protection.
