The Multisig Key Recovery Service (KRS) will convert an account to an 2-3 multisignature account. Two (of three) new key will be generated, the 3. key can be recovered using the same method as the single key KRS.
NEM
Create Multisig Key Recovery Service
A major problem wallet users encounter is the security of the keys. While most new secure wallets (in the crypto world) implement multi-signature, in which 1 or 2 keys are created and stored by the user, a problem arises when the user forgets one of the passwords as they would then lose access to the wallet and its contents. The idea with a 2-3 multi signature wallet where the user controls 2/3 key and the service 1/3 is important because the user is in control and his fund cannot be compromised in case the service shut down, get hacked etc. The multi signature KRS tries to deal with creating 2-3 multisig accounts and the problem of recovering lost keys. The idea is in basic pretty simple, the user provide a private key with enough funds for a multisig conversion fee. Then the KRS create the 2-3 multi signature account where 1 key can be store by the user, 1 key can be store by the service and 1 key by the KRS. This is not entirely true, because the KRS doesn’t store any keys but the user are provided with a unique link which can be activated along with the personal identifiable information for recovering the last key. The KRS is open source which means that anyone could run the service and the user in principal could use any of these providers to recover his keys.