Multisig, short for "multi-signature," is a security feature used in digital asset transactions. In simple terms, it's like having multiple locks on a door that require different keys to open. It works through the use of smart contracts, which are programs that enforce specific conditions and actions.

In a multisig setup, a predefined number of signatures or approvals are required to validate and execute a transaction. This adds an extra layer of security and reduces the risk of unauthorized access to funds.

Let's say there's a trust fund managed by a group of trustees. The trust fund holds a significant amount of digital assets, and it requires a multisig setup for enhanced security and trust. In this example, the trust fund's multisig wallet is configured as a 3-of-5 multisig, meaning that out of the five trustees involved, at least three of them must approve any transaction. This ensures that no single trustee has sole control over the assets and that multiple parties must reach a consensus for any fund movement.