Using “multisig custody” is a highly secure and best-practice way to store digital resources.

A resource like bitcoin is always secured by ownership of a “private key”, which is like a very strong secret password.

A multisig solution is one that requires a majority of private keys in a defined group to work together to allow bitcoin to be spent. For example in a four-person multisig, you need 3 of 4 of the people with the secret password (private key) to work together to move the bitcoin.

This makes the bitcoin very secure and provides some protection against hacking or social attacks.

Fedi uses multisigs to secure resources in the Federation in accordance with best security practices, and to ensure that no actions can be taken without agreement from a majority of Federation guardians.