Multi Signature Crypto Wallets?! In the realm of Bitcoin and cryptocurrencies, incidents such as MtGox or Bitfinex are nothing new. Also, there have been incidents where an individual has lost his/her coins because he/she lost access to their private keys. How do we avoid such losses and make Bitcoin more secure? This is a pressing question in everyone’s mind… That’s why more and more people are becoming awakened and looking out for more secure ways to store their bitcoins. And why not? Bitcoin is becoming more and more precious each day. At the time of this writing, Bitcoin is trading well above $4000. Traditional software/hardware Bitcoin wallets bank on a single signature key (i.e. single private key through which an individual can sign and verify a transaction).Though it may look like single keys give full autonomy to the owner of the funds, in reality, this is very risky. Yes, risky!! This single signer system puts a lot of power in one little string of alphanumeric numbers (i.e. your private key). What if you have misplaced this key? What if this key is stolen? In the above scenarios, you will lose your funds. But you can be smart and avoid such situations by using multi-signature addresses or wallets instead of traditional wallets.
What is a Multi-Signature Wallet?
Multisignature (multisig) refers to requiring more than one key to authorize a Bitcoin transaction. It is generally used to divide up responsibility for possession of bitcoins. Standard transactions on the Bitcoin network could be called “single-signature transactions,” because transfers require only one signature — from the owner of the private key associated with the Bitcoin address. However, the Bitcoin network supports much more complicated transactions that require the signatures of multiple people before the funds can be transferred. These are often referred to as M-of-N transactions. -BitcoinWikiThis multisig technology is what makes all cryptocurrencies ultra safe and secure. Multisig technology fuels multi-signature wallets (aka multisig wallets). Here is an awesome video on multisig wallets and multi-signature technology: Typically, all types of multi-signature wallets require M-of-N signatures. Let’s say you have configured your multisig wallet for 3-of-5 authorized signatures. This means when at least 3 out 5 authorizers sign a transaction, only then will it become a valid transaction. That’s why multi-signature wallets become an unbeatable use case to recover your funds when you lose your one key or if are running a startup/community and don’t want to put the spending power in the hands of just one person. So without further delay, here is the list of the best multisig wallets.