Requires all N private keys to authorize a transaction. Typically used for situations where full control needs to be shared among all parties.
M - Number of signaturesN - Number of private keys
M-of-N Multisig Wallet
Requires M signatures out of a total of N private keys to authorize a transaction. Offers flexibility depending on the number of participants & desired security.
2-of-2 Multisig Wallet
Requires both of the two private keys to sign a transaction. Ideal for a partnership or where two parties fully trust each other
2-of-3 Multisig Wallet
Requires two of three private keys to approve a transaction. Often used by small businesses, organizations, or for shared custody of funds
3-of-5 Multisig Wallet
Requires three of five private keys to authorize a transaction. Commonly used in large organizations or more complex structures where control is distributed across many stakeholders.
Conclusion:Multisig wallets offer significant security advantages, particularly for shared assets or organizations, but they come with complexities and management challenges