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Multi-Signature

Mulitsig, also called multi-signature, is the requirement for a transaction to have two or more signatures before it can be executed.

What are the advantages that can be gained from using multi-­sig technology? One can completely eliminate single points of failure by ensuring that the keys for an address are generated and stored on completely separate devices, so achieving redundancy.

Why use multisig? It enhances the security by setting more than 2 signatures as a requirement for transactions, ensures that the private key is not lost, reduces the theft rate by applying the “Multisig Escrow” system into an organization for instance.

What is the most popular multisig type? “2 of 3” transaction style which requires the two signatures of three registered signatures is the most popular type of multi-signature.

Do all wallets support multisig transactions? Not all wallets do.

Interesting facts

  • The first multisig wallet was launched in August 2013 by BitGo.
  • 2014 has been touted by some as the ‘Year of Multisig’ for one big reason: the number of services that support multi-signature transactions increased significantly.