There are multiple benefits of using multisig wallets, such as when you need more safety for your funds and access rights.
Multisig wallets are mostly used for securing funds and contract access rights. Let's understand their benefits:
- Multiple owners: As we have seen, in the case of a single account handling funds/access rights, it is possible for private keys to be compromised easily. This could become a single point of failure for a system. To increase the level of security, the funds/access rights should be given to multiple entities so that the risk can be distributed among different stakeholders. The owners must ensure that their private keys aren't stored on a public place or on a public machine; this would be a single point of failure if that machine is ever compromised.
You can also configure the number of required signatures...