What is the difference between a private-key wallet and a multi-signature wallet like Sequence?

Traditional crypto wallets generate a private key and a seed phrase upon wallet creation. The seed phrase usually consists of 12 or 24 randomly generated words, and it is used to recover access to the wallet. The generated private key is used to sign or authorize your transactions. You shouldn’t share your private key or your seed phrase with anyone under any circumstances, as doing so will compromise your assets.

Multi-signature wallets, like the Sequence Wallet, are the new generation of crypto wallets. Such wallets generate multiple keys and require a certain combination of those keys to gain access to your wallet. This method enhances wallet security by preventing a single point of failure, and allows secure recovery of wallet access if login credentials are misplaced.

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