Requiring signatures from at least M of N total signers to execute the action. More generally, it is a type of decentralized governance.
Allows people to trade directly with each other, using a record of transactions kept in a shared ledger. Eliminates the need for middlemen, like stock exchanges and banks.
Holding private keys in different locations enhances security, while allowing multiple keys to sign a transaction improves usability. If one of the keys is compromised, your assets are still secure.