# How it works

### What is a multi-sig wallet or "Shared wallet"? <a href="#id-4eb4" id="id-4eb4"></a>

When you wish to send funds from your wallet, a transaction is created and signed. By signing the transaction, you are digitally saying:&#x20;

*“I am the owner of the funds, I have the key to manage them, and I approve this transaction.”*

Single signature (also known as “basic”) cryptocurrency wallets need one signature to sign a transaction. Multi-sig is the shortened name for multi-signature, and, as the name indicates, this kind of wallet requires **one or more** signatures to sign a transaction.

A **multi-sig** wallet is usually shared by two or more users **Co-payers**. Depending on the kind of wallet, the number of signatures required to sign a transaction will be lower or equal to the number of co-payers of the wallet.

For example, a **3–3** wallet is a multi-sig wallet that is shared by three people and requires three signatures to sign a transaction. A **2–3** wallet is a multi-sig wallet that is shared by three people and requires two signatures to sign a transaction. You may also see **“2 of 3”** to indicate the number of co-payers needed.

### **How does a multi-sig wallet work?** <a href="#d7ef" id="d7ef"></a>

To move funds, every wallet requires the user broadcasting the payment to sign the transaction. Multi-sig wallets also require one or more co-payers to sign the transaction.

**Example A:** with a 2–2 wallet Co-payer A wants to send funds. When they try to move funds, the wallet creates a transaction proposal that is only signed by Co-payer A. Sending the funds **requires both Co-payer A and Co-payer B to sign the transaction**. Until Co-payer B approves the transaction, the funds stay in the wallet. Once Co-payer B approves the proposal, their wallet signs the transaction, broadcasts it to the network and sends the funds.

**Example B:** a 2–3 wallet requires two (out of three total) co-payers to sign a transaction. Co-payer A creates the transaction proposal. Either of the remaining co-payers (Co-payer B or Co-payer C) can approve the transaction proposal.

A 2–3 wallet has **three** co-payers but requires only **two** signatures.

THORSafe Multi-Sig transaction proposals do not expire — there is **no time limit** to approve a transaction proposal. There is no co-payer hierarchy. This means that any co-payer can create a transaction proposal, and all the co-payers can sign the transaction proposal.