Multi-signature, or multisig, is a wallet configuration that requires at least two keys to authorize a transaction. Commonly used by cryptocurrency exchanges to ensure funds can’t be moved by a rogue employee, multisig also has applications for end-users. If you’re seeking to enhance the security of your noncustodial bitcoin wallet, multi-signature might be the answer.
Also read: Everything You Should Know About Bitcoin Address Formats
The Quest for the Perfect Custody Solution
There’s no such thing as the perfect bitcoin wallet. Hardware wallets can be opened under duress. Paper wallets can perish. Mobile wallets can get lost. And then there’s custodial wallets, which are never more than an exchange hack or exit scam away from being drained. But there’s one solution that combines some of the best elements of custodial and noncustodial wallets.
A multisig wallet requires at least two key signatures to authorize a transaction. This means you will have to trust another party. Unlike storing funds on an exchange, however,…