Multi-signature wallets require multiple approvals before executing critical transactions, thereby distributing authority and reducing the risk of unauthorized asset transfers. This approach ensures that no single entity has unilateral control over the assets, aligning with principles of decentralized security. A study titled “Enhancing Cold Wallet Security with Native Multi-Signature Schemes in Centralized Exchanges” introduces a protocol that employs native multi-signature schemes to manage cold wallet assets securely. The proposed system involves multiple distinct devices and corresponding administrators for both wallet creation and signature generation, ensuring that no final private key is stored on any single device. This design prevents any individual authority from unilaterally accessing or transferring exchange assets, thereby enhancing overall security.
