What is meant by 3 of 5 multisig?

In the context of cryptocurrency and blockchain technology, a multisig (short for “multisignature”) is a security mechanism that requires multiple parties to approve a transaction before it can be executed.

A “3 of 5 multisig” would mean that there are five parties involved in the transaction, and at least three of them must approve the transaction before it can be executed. This is typically achieved by requiring multiple signatures, with each party having a private key that is required to sign off on the transaction.

Multisig is often used to add an extra layer of security to cryptocurrency transactions, particularly for high-value transactions or for funds that are being held in a shared wallet. By requiring multiple parties to approve a transaction, multisig helps to reduce the risk of a single point of failure or malicious actor compromising the security of the transaction.