4-of-7 in cryptocurrency refers to a type of multi-signature arrangement where a transaction requires the approval of four out of seven involved parties in order to be completed.
This system adds an extra layer of security compared to traditional single-key transactions. With 4-of-7, even if one or two parties’ keys are compromised or unavailable, the transaction can still proceed as long as the required number of approvals are met.
This feature is particularly useful for businesses, organizations, or group accounts where multiple individuals need to sign off on transactions. It helps prevent unauthorized access and reduces the risk of fraud or mishandling of funds.
Overall, 4-of-7 provides a flexible and secure way to manage transactions in the cryptocurrency space by requiring the consensus of a majority of authorized parties before any funds are moved.
