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What is a Multisig Wallet?

The security of digital assets is a major concern for anyone who holds them. One way to increase security is through the use of a multisig wallet. A multisig wallet, short for multi-signature wallet, requires multiple parties to sign off on transactions, rather than just one person controlling the funds.

Multisig wallets add an extra layer of security that's vital for businesses dealing with large amounts of funds. They're commonly used by banks and other financial institutions to safeguard their assets.

What is a multisig vs single signature wallet?

Single signature wallets require one signature to approve transactions, and only one person has control over the assets. They're easy to set up and use, making them a great choice for beginners. However, losing the private key or getting hacked can result in irreversible loss of assets.

Multisig wallets require multiple signatures to approve transactions, providing an added layer of security. Multiple people have control over the assets, making them perfect for businesses, organizations, or families who want to manage their finances collaboratively. Even if one private key is lost or stolen, the assets remain safe and secure.

When choosing between a single wallet and a multisig wallet, it's important to consider your level of experience with cryptocurrency and the level of security you require. Single wallets are simple to use, but susceptible to hacking and loss of assets. Multisig wallets offer greater security and are ideal for collaborative financial management.

Benefits of Multisig Wallets

Multisig wallets provide higher security and trust for holding cryptocurrency assets, making them an important tool for businesses looking to protect their digital wealth. 

1. Increased Security: Multisig wallets divide private keys among multiple parties, making it difficult for hackers to access your funds. They also prevent single points of failure, as the loss of one private key won't necessarily result in the loss of your funds.

2. Improved Trust: If you're holding funds for a business or family trust, a multisig wallet can provide added trust. All parties involved can be confident that the funds can only be accessed with the consent of multiple parties.

3. Reduced Risk of Theft or Loss: By requiring multiple signatures to access your funds, you reduce the risk of theft or loss due to fraud or human error. For example, if one party loses their private key, the others can still access the funds.

For more information on how to keep your digital assets safe, check out this helpful guide.

List of 5 Multisig Wallets

1. Gnosis Safe - is a digital wallet for managing cryptocurrencies in a secure and user-friendly way. It's built on Ethereum and offers features like multi signature wallets and customizable user permissions.

2. Squads - is a Solana-based platform powered by the Squads Protocol that simplifies asset management for development teams and treasuries. It enables users to secure their treasury, programs, validators, and tokens in a multisig wallet, and manage them collaboratively with their team.

3. MPCVault - is a non-custodial enterprise wallet for businesses in the Web3 ecosystem. It supports multiple chains, signatures, and assets, and is trusted by over 40 businesses worldwide, including Web3 projects and venture capital firms. With its high level of security and full asset control, MPCVault is an efficient and reliable solution for businesses managing Web3 assets.

4. Castle - is a smart contract wallet for NFT collectors. It offers secure storage and trading features using a multisig wallet. Users can create personal or shared vaults, track their portfolio, and execute batch transactions. Castle also enables groups to pool funds, manage shared treasuries, and split profits.

5. UniPass - is a non-custodial smart contract wallet that eliminates the need for seed phrase and gas. They are developing wallet SDKs for various platforms and use cases, including Web3 games and loyalty programs like Starbucks Odyssey, to promote mass adoption of Web3 technology.

How does Starlight integrate with multisig wallets?

Starlight seamlessly integrates with Gnosis Safe, a multisig wallet common for teams transacting on Ethereum. Web3 teams can easily create a Gnosis Safe or integrate an existing safe to the platform, and easily begin managing their funds and payments in one place. Click here to begin using a multisig wallet on Starlight.