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Most users of Ethereum are used to a single key wallet, often referred to as an externally owned account (EOA). These accounts are secured with a private key, which can be transformed into a 12 word “seed phrase” for the user. If that private key is compromised in any way, the funds can be stolen.
If your business comprises of more than 1 person, an externally owned accounts is not a secure way to manage your crypto business’s funds. If an employee goes rogue or is careless with the private key, the funds are gone forever. Even if your business is made up of just yourself, I’d argue it’s still a poor way to manage funds. So, what is the better solution?
Enter the Multisig. Gnosis Safe is a smart contract wallet running on Ethereum that requires a minimum number of people to approve a transaction before it can occur (M-of-N). If for example you have 3 main stakeholders in your business, you are able to set up the wallet to require approval from all 3 people before the transaction is sent. This assures that no single person could compromise the funds.
On top of that, Gnosis Safe gives you complete self custody over your funds. There is no risk of a bank giving you a hassle for running a crypto business and the smart contract that is deployed is completely trustless and in your control.