two-of-three multisignature
A wallet policy where any two of three independent keys can authorize a spend, balancing redundancy and theft resistance.
- Also known as
- 2-of-3 Multisig
A 2-of-3 multisig wallet locks funds so any two of three keys must sign a transaction. It is common for shared custody, business treasuries, inheritance planning, and self-custody setups that need recovery options.
Good 2-of-3 setups avoid single points of failure by separating seed backups, devices, locations, and roles. Users should also back up the wallet policy or output descriptor, because signatures alone are not enough to reconstruct every wallet.
Related terms
3 linkedExplore connected entries beyond the alphabetical index.
Multi Signature
→A type of digital wallet that requires signatures from multiple private keys to authorize transactions.
Seed Phrase
→A human-readable backup that can recreate a wallet’s private keys, addresses, and spend authority.
Output Descriptor
→A text representation that describes how to derive addresses and spend policies for a set of keys.
All terms and definitions may update as the Cryptionary improves.
