Search
Results for “Threshold signature vs Multisig”
Threshold signature
A threshold signature lets a group share control of one key so that an agreed number of them, say 2 of 3, can sign together while fewer cannot. The result is a single ordinary signature, which on chain looks the same as one made by a single key.
What it means for you. Unlike on-chain multisig, the rules (who holds shares, how many must sign) are not visible to or enforced by the blockchain; they live in the signers' software. If shares are lost below the threshold, or the coordinating software stops working, the funds are as stuck as with a lost private key.
Sources: NIST IR 8214: Threshold Schemes for Cryptographic Primitives, RFC 9591: The FROST protocol for two-round Schnorr threshold signatures, BIP-340: Schnorr Signatures for secp256k1 · checked 4 October 2026
Multisig
Multisig (multi-signature) is a setup where moving funds needs approval from several keys instead of one, for example any 2 of 3. Each key can be held on a different device or by a different person.
What it means for you. One stolen or lost key is not enough to move or lose the funds, but losing more keys than the setup can spare locks them permanently. Record which keys exist, who holds each, and the full wallet setup needed to restore it, not only the seed phrases.
Sources: BIP-11: M-of-N standard transactions, bitcoin.org: Secure your wallet, Bitcoin developer guide: Transactions · checked 4 October 2026