Multisig is an abbreviation for Multi Signature, and it is a technology that requires multiple private keys to sign a transaction.

In the context of cryptocurrencies, an address refers to an address that requires two or more private keys to execute a transaction.
In contrast, an address that can execute transactions with a single private key is called a single-signature address.

▼What are the features of multi-signature?

High safety!
The benefit is that it reduces the risks involved in hacking!

For example, suppose you have deposited your private key with an exchange, and that exchange is hacked.
With a single-signature system, if the private key is stolen, it's game over in an instant!

However, with multi-signature security, you won't lose your assets unless the required number of private keys for executing the transaction are stolen.
For example, in the case of a 2-of-3 multisig security, a transaction cannot be executed unless two out of the three private keys are present.
(Of course, if all your private keys are stolen, you're out of luck.)

One of the factors that caused a stir in the world when Coincheck was hacked, resulting in a loss of approximately 58 billion yen, was precisely this private key.
Because Coincheck used a single-signature system, once the private key was stolen by a hacker, the hacker was able to freely conduct transactions, resulting in the outflow of funds.

Incidentally, our SHC service also employs multi-signature escrow.