Crypto News

Best Multi-Signature Bitcoin Wallets 2018

Best Multi-Signature Bitcoin Wallets 2018

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. -BitcoinWiki
This 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.

Top 6 Best Multi-Signature Bitcoin Wallets

1. Armory (Desktop Wallet) Armory Armory is an HD Bitcoin wallet where users control their private keys without relying on Armory or any third party servers. It is an open-source wallet with cold storage and multi-signature support. It allows users to create multisig addresses with its Lockboxes feature. It provides up to 7-of-7 authorizers to sign a Bitcoin transaction. Check out an official video on how to make a multisig Armory wallet. If you are an exchange or a group of stake holders in a community or a startup, then Armory is one of the best choices you have. At present, it is available for Windows, Mac OSX, and Linux. Download Armory 2. Electrum (Mobile/Desktop Wallet) Electrum Bitcoin Wallet Electrum is a lightweight Bitcoin wallet that supports cold storage and multi-signature features. It is one of the oldest and most trusted Bitcoin wallets available in the market. It is an open source project released under an MIT license. That’s why anyone can run a Bitcoin node with Electrum, and there is no single point of failure. It also supports integration with third party hardware wallets such as Ledger, Trezor, and Keepkey. Here is an official step by step tutorial that shows how to create a 2-of-2 multisig wallet using Electrum, and here is the full documentation about Electrum. It provides up to 15-of-15 authorizers to sign a Bitcoin transaction. At present, it is available for Windows, Mac OSX, Linux, and Android. Download Electrum 3. Copay (Mobile/Desktop Wallet) Copay Bitcoin Wallet Copay is an open source HD wallet which supports multi-signature addresses to secures your funds. Here you are in charge of your private keys and there are no hidden or third party servers. It is the first of its kind which also provides testnets both on Android and iOS so that you can first try how your multisig wallet is working. It provides up to 2-of-3 authorizers to sign a Bitcoin transaction. At present, it is available for Windows, Mac OSX, Linux, Chrome Extension, iOS, and Android. Download Copay||Download Co pay iOS App 4. BitGo (Web/Mobile/Desktop Wallet) BitGo Wallet BitGo is a popular Bitcoin wallet which supports multi-signature functionality and has been taking care of Bitcoin funds since 2013. It is also one of the most powerful Bitcoin wallet and API service companies that powers exchanges like ShapeShift, Bitstamp, BitBay, Bitfinex, Kraken, BitQuick, and UnoCoin. You can even integrate your multisig addresses with BitGo along with the Ledger Nano S and Ledger Blue. It provides up to 3-of-3 authorizers to sign a Bitcoin transaction. BitGo - A popular Bitcoin wallet At present, it is available for Windows, Mac OSX, Linux, Chrome Extension, iOS, and Android. Use BitGo 5. Coinbase (Web Wallet) Coinbase Web wallet You must have heard about the popular Bitcoin wallet Coinbase, a hosted wallet. “Hosted” means that Coinbase controls your private keys on your behalf. But very few know that Coinbase also provides non-hosted multisig wallets whereby you control your own private keys. It uses a 3-key architecture (i.e. Coinbase key, shared key, and user key) to provide you the control of your funds. It provides up to 3-of-3 authorizers to sign a Bitcoin transaction.
Tags

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Close