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GLOSSARY/MULTISIG

Multisig

SECURITY
DEFINITION
A wallet requiring multiple keys to spend — like a safe deposit box needing two of three keys. Removes the single point of failure that dooms most self-custody.
A 2-of-3 multisig spreads three keys across devices or locations; any two authorize a spend. Lose one key: recover with the other two. A thief finds one key: useless alone. That failure-tolerance is why serious holdings graduate to multisig.
The tooling has matured from expert-only to genuinely usable: Sparrow (free, DIY), Nunchuk (private, polished), and collaborative custodians like Casa and Unchained who hold one key and choreograph the rest.
IN A SENTENCE
“Their family vault is a 2-of-3 multisig: one key at home, one in a bank box, one with Unchained.”

Key facts

Common quorum2-of-3
Large holdings3-of-5
DIY toolsSparrow · Nunchuk
AssistedCasa · Unchained ($250+/yr)

Common questions

Is multisig overkill for me?

Below serious amounts, a single hardware wallet with a good backup is fine. When loss would change your life, redundancy earns its complexity.

Multisig or passphrase?

Different tools: passphrases add a second secret to one key; multisig removes single points of failure entirely. Large holdings often use both.
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