Cryptocurrency | Get to know Multi-sig Wallet and its advantages

Have you ever heard of a multi-sig wallet? If not, then you have come to the right place. Multisig is short for multi-signature, which can make users sign documents as a group. Multisig results from a combination of several signatures.

In the context of cryptocurrency, this technology is used in crypto wallets as a security tool and can also be used in several other contexts.

In the context of security, this technology works as a double key held by different entities to secure a document and others. For example, Bob stores photos in a safe and are locked using a padlock with two keys, one key held by Bob and the other by someone else. The only way to open the safe is to use both keys at the same time, so if one of them is unable to open the box without the other's agreement.

All funds deposited in a multi-sig swallow can only be accessed with two or more signatures. Therefore, multi-sig wallet users are allowed to create an additional layer of security. Examples of additional security features include memory parse, PIN, 2FA, and email or SMS code.

Single-sig vs Multi-sig
bitcoin is stored at an address with a standard one key that is a private key, this means anyone who holds a private key can have the BTC. The advantage of Single-sig is that it only requires one confirmation, faster and safer "safe here means only genuine users can determine".

The online crypto wallet currently generally provides multi-sig features such as PIN and 2FA, so to open the wallet must have a PIN or 2FA in addition to a password. For example, if you have a crypto wallet and use a password and PIN as a security, then if you want to open the wallet you must know the password and PIN and not one of them.

The advantage of multi-sig is better security, thereby reducing the potential for theft of funds or other crimes. However, because they have to take several steps to do it, then multi-sig requires more time, aka slower than single-sig.

Also, multi-sig supports Escrow Transactions, which are transactions involving third parties, for example, Bob will send BTC to Charles and include Sarah as a third party (trusted). Then, Bob does Bitcoin on Charles, both can use the private key to sign and complete transactions.

Sarah is needed if there is a problem, at this point Sarah can use the key to make a signature that requires the signature of Bon or Charles, depending on Sarah's decision.

Although multi-sig still has some shortcomings, multi-sig is considered effective for securing funds, especially a company's funds. Also, multi-sig allows for escrow transactions without trust. What is certain is that this technology will continue to develop and will certainly also make this technology more flexible.

Don't have Bitcoin? Buy it now at Coinbase, or get 14 USD for free here and buy a trusted hardware wallet HERE, or Get Barve
Cryptocurrency | Get to know Multi-sig Wallet and its advantages Cryptocurrency | Get to know Multi-sig Wallet and its advantages Reviewed by sheffter on October 13, 2019 Rating: 5

No comments:

Powered by Blogger.