Multi-signature wallets are designed to improve the security of digital assets by requiring more than one private key to authorize a transaction. This means that instead of a single key holder being able to send funds, multiple parties must sign off on the transaction, which can help prevent unauthorized access and ensure that all parties agree before funds are moved. For example, a typical setup might require two out of three signatures to enact a transaction (2-of-3 multisig). This feature is particularly useful for organizations, joint accounts, or shared wallets, where trust among multiple parties is necessary.