Why Multisig/Proxy Matters In Polkadot
Proxy
In the blockchain world, account security and fund governance have always been core infrastructure. Whether it’s personal high-value assets, institutional treasuries, or DAO governance vaults, virtually every chain relies on Multisig and Proxy tools.
Industry Context: The Universal Importance of Multisig
In the Ethereum ecosystem, multisig has become the de facto standard:
Around 1% of all ETH is managed through multisig accounts.
Leading DAOs (such as MakerDAO, Uniswap, and Aave) rely on multisig or similar account systems to safeguard massive treasuries and governance powers.
For cross-chain bridges, protocol treasuries, and venture funds, multisig is seen as an irreplaceable security baseline.
In short, multisig is a prerequisite for a blockchain to mature.
Polkadot: Native Support, Stronger Commitment
Unlike many chains that depend on third-party smart contracts, Polkadot natively includes the Multisig Pallet and Proxy Pallet, demonstrating its strong emphasis on account security and governance.
On Polkadot, around 5% of all DOT is managed via multisig, a higher ratio than Ethereum’s ETH.
Thanks to parachain interoperability, one multisig account can be recognized and used across multiple chains. This level of flexibility is rare in other ecosystems.
Multisig and proxy are thus infrastructure-level modules in Polkadot.
User Advantages in Polkadot
Easier creation: Multisig can be set up without deploying extra contracts.
Cross-chain compatibility: A single multisig account can be reused across parachains.
Proxy + Multisig combination: Enables easier adjustment of members and thresholds.
Support for nested structures: Complex account setups can be built to maximize security.
These features make Polkadot’s multisig not only a security tool, but also a governance enabler.
Challenges Remaining
Despite its advantages, Polkadot’s multisig and proxy system still faces challenges:
Usability Issues
Multisig accounts often struggle with compatibility in third-party applications.
The rules are complex, raising the entry barrier for new users.
While nested multisigs are powerful in theory, they are difficult to use in practice.
Security Concerns
Signing risks remain, with the possibility of blind signing; cross-platform verification is still needed.
No built-in simulation of multisig transactions, leading to wasted fees from failed executions.
Lack of widespread best practices for advanced account architectures that maximize security.
Conclusion
In the Polkadot ecosystem, multisig and proxy are both safeguards and governance pillars. They secure treasuries, enable collaborative control, and provide flexibility. But for mass adoption, improvements in usability and advanced security tooling are essential.
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