What is multisig and why is it important?

Multisig lets you self-custody your bitcoin while eliminating single points of failure.

Multisig, short for multisignature, refers to a bitcoin address that is controlled not by a single private key, but by multiple private keys.

Unchained Capital's platform supports multisig natively through the bitcoin protocol's pay to script hash (P2SH) feature, which is an address type used in bitcoin. Our vault product currently uses a 2-of-3 quorum for multisig, meaning two of three keys are needed to move bitcoin out of a vault.

This allows for a much greater level of security over single signature schemes because it helps eliminate single points of failure. If one key is lost, destroyed, or stolen, it can always be replaced by a new key because Unchained Capital can act as your backup in these cases.

To learn more about why multisig is more secure, read our blog series: Why multisig?.