Join 100,766 users already on read.cash

What is Multi-signature Wallet

5 21 exc
Avatar for Kawser199
Written by   268
2 years ago

Hello friends, How are you ??

I hope you Are all Well..

Today I am @Kawser199 discusse about Multisignature Wallet...

Multisignature wallet refers to the fact that multiple users need digital signatures to access the wallet. Although the use of this digital multisignature is already there, its actual use can be seen in the world of cryptocurrency.

In the world of cryptocurrency, multisignature was first used in 2012 to protect Bitcoin wallets. Although multisignature is used in various ways, its main use is more in security issues. So let's see how multisignature is used in cryptocurrency.

How does multi-signature work?

Let's try to find out what a multisignature car looks like with a small example. Many of us may have seen bank lockers. Bank lockers have multiple keys. Excludes bank locker. Suppose you have a locker with two keys. That means you will need two keys when you open this locker. You cannot open this locker if a key is lost.

Basically, multisignature is just such a security. You will need more than one signature when you want to make a transaction by accessing your wallet. This means that this multisignature provides additional security for your account.

Single wallet VS Multisignature Wallet

Typically, Bitcoin is stored with a single key. This means that the person who has this private key will be able to control that wallet fund alone. Now if in any way your private key falls into the hands of someone, you will surely lose your funds.

And more than one signature is required to make any type of transaction in a multisignature wallet. This means that funds cannot be transferred from a multisignature wallet to a single person or a single key. Let us discuss the matter with an example.

Suppose a bitcoin wallet is bound with two "keys". Selim has one "key" and Tuhin has the other "key". Now if Selim doesn't tell Tuhin if he tries to transfer any beacon from that wallet, he will not be able to transfer. Although he can enter the wallet, he will ask for a second signature in the wallet when he goes to transfer a bitcoin. This means that if he does not get a second signature from Tuhin, he will not be able to do any bitcoin transaction.

Similarly, Tuhin will not be able to do any bitcoin transaction unless he gets his signature from Selim. All in all, the consent of both will be required to make any type of transaction from this multisungnet wallet.

Increases security

Multisignature wallets are more secure than single key wallets. Because, if somehow someone gets your "single key" wallet "key", you will lose your funds.

But that is unlikely to happen in the case of multisignature wallets. Because somehow even if someone gets a “key” in your multisignature wallet, they won’t be able to steal your funds. Because, when he goes to transfer your funds, he will ask for a second "what" which he does not have.

Caution in using multisignature wallet

With Multisignature Wallet you can create more than two signatures. So if you want to use a multisignature wallet, have four, more than two signatures. Because, if you create a wallet with 2 "signature keys", if for some reason you lose a "signature key", you will lose your funds. Because if you want to make any kind of transaction from a wallet with two signature wallets, you will need both signatures.

So if you want to use a multisignature wallet, use more than two signatures. So even if you lose one key for some reason, you can use the other key to trade your funds.

Suppose you create a wallet with 3 multisignature keys. Where you set it as Settings, you can use your funds with any 2 multisignature keys. Now even if one of these 3 "keys" is lost, you can use your fund with the other two keys.

This way you can set multisignature keys like 4, 5, 6 etc. You can create the option to use 3 out of 4 keys, 3 out of 5 keys, 4 out of 6 keys.

If you set 5 multisignature keys to create a wallet usage method with any 3 keys. However, you can use your fund by using any 3 keys of 5 multisignature.

Who is this multisignature wallet for?

Anyone can use a multisignature wallet. However, this type of wallet usually has the authority to have more than one user, that is, used by businesses.

Roughly this was a discussion of what a multisignature wallet is. For one thing, if you don't know how to use a multisignature wallet, refrain from using it. Hopefully in the coming days I will discuss how to make a multisignature wallet and deal with it.

Sponsors of Kawser199
empty
empty
empty

@TheRandomRewarder I miss you so much... I hope you reading my Article & Inspire me...

8
$ 0.00
Avatar for Kawser199
Written by   268
2 years ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

Great explain about multi signatures Wallet. Thank you..

$ 0.00
2 years ago

Excellently explained topic related to wallets

$ 0.00
2 years ago

Great article by you my friend

$ 0.00
2 years ago

Thanks for information dear

$ 0.00
2 years ago

Really nice article

$ 0.00
2 years ago