Multisig
Cryptocurrency wallets requiring multiple keys to authorize a spend — reducing single-point theft in escrow arrangements.
Multisig (multi-signature) is a wallet arrangement where spending requires several independent keys — a 2-of-3 setup, for example, needs any two of three signatures. On darknet markets it was applied to escrow: buyer, vendor, and platform each held a key, so no single party could take the funds alone.
Why it matters
Classic market escrow concentrates all pooled funds in the operator’s wallets, which is what makes an exit scam so profitable. Multisig changes that geometry: the market cannot unilaterally empty escrow, and a thief who compromises one key gets nothing. It was the main technical answer proposed to the custody problem, and markets that offered it advertised it as a structural safety feature.
Limits and common mistakes
Multisig reduces single-point theft but does not create trustlessness. Two of three parties can collude, lost keys can freeze funds, and the platform still mediates disputes. The common mistake is assuming that “multisig” on a market’s feature list means funds are safe — it describes who must sign, not whether the signers are honest.
Category: Cryptocurrency