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multisignature.md

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Multisignature

Summary

Multisignature Wallets (multisig wallets) are wallets created with signatures from several private keys. Multisignatures require signatures from a majority of the original signing keys (commonly referred to as n-of-m keys) in order to interact with the wallet. Ideally, the signing keys of a multisignature wallet should be comprised of several different types of wallets in order to reduce the risk of any one key from compromising the security of the multi-signature wallet. Multisignature wallets where the keys are properly distributd also reduce the risk of losing the keys to your funds due to unforeseen circumstances. For example, if a multisignature wallet included keys stored on a hardware wallet, a mobile wallet, and a desktop wallet and your mobile phone is stolen, you could still access your multisignature wallet using the hardware and desktop wallets.

Pros and Cons

Pros

  • Can be secured by several types of wallet keys (desktop, hardware, mobile, etc.) for added security
  • Can be configured to be recovered by a portion of the original signing keys (n-of-m keys)
  • Non-custodial, more private than most other methods of interacting with your funds.

Cons

  • Inconvenience of requiring access to multiple keys to interact with the wallet

Wallets

Grid+'s hardware agent called Lattice1 also uses multisignature wallets to allow end users and merchants to securely store their funds using a combination of an arbitrary amount of smart cards or Safe Cards and your mobile phone.

Resources