Multisignature

The term multisig represents multi-signature, which is a specific type of digital signatures that can be made through the combination of different unique signatures. The multisig technology makes it workable for at least two users to sign digital records or cryptocurrency transactions aggregately.
Notwithstanding the way that multisig has been surviving inside the world of digital currencies, the principle is one that existed long before the creation of Bitcoin. The technology was first executed to Bitcoin addresses in 2012, however the first multisig wallet was just made one year after the fact.

How can it function?

In short, the funds stored on a multi-signature address must be gotten to when at least 2 signatures are given simultaneously.
As a simple similarity, we can envision a secure deposit box that has two locks and two keys. One key is held by Alice and the other one is held by Bob. The main way they can open the deposit box is by giving their both keys simultaneously, so one can't open the container without the endorsement of the other.
This means that multisig wallets offer an extra layer of security and by utilizing this technology, users are able to forestall the issues that frequently happen with the utilization of single-key wallets (the ones that depend on a single private key to be gotten to). By having a solitary key, the funds of common cryptocurrency wallets are protected by a single point of disappointment, and that is the reason cybercriminals are continually growing new phishing strategies to try and take the funds of cryptocurrency users.
Since multisig addresses require more than one signature to transfer funds, they are likewise suitable for organizations and corporations that might need to store funds on a shared wallet. This would moderate the risks that emerge by keeping the funds in the hands of a single person or by dealing with a single private key to various people simultaneously.