Multisig<\/strong> (short for Multisignature<\/em>) is a digital signature technology in the field of cryptocurrency and blockchain, which requires multiple private keys to authorize a transaction.<\/p>\n Unlike Singlesig<\/strong>\u2014which only requires one key to sign a transaction\u2014Multisig allows the implementation of policies such as “2-of-3 signatures”, enhancing security, reducing the risk of theft, and enabling collaborative asset management.<\/p>\n Definition of Multisig – Source: Medium<\/p><\/div>\n This technology is widely used in multi-signature crypto wallets<\/strong>, centralized and decentralized exchanges<\/strong>, DAO governance<\/strong>, and digital asset custody solutions<\/strong>.<\/p>\n The great benefits of Multisig are increased security and risk management in case of loss of secret keys. But it also has disadvantages that we should know.<\/p>\n Assuming that even one secret key information is hacked and leaked, you will not lose your property if your account requires 2 or more signatures. And It is, of course, obvious that you must not lose all the necessary secret keys of transactions. Anyway, Multisig gets less risk than Singlesig.<\/p>\n At a company, or exchanges, accountants take full responsibility of managing all, so, in some cases, they have a chance to conduct corruption. However, you don\u2019t worry much when creating Multisig for many levels in order to reduce the risk of corruption.<\/p>\n In reality, when you lose your key that is used to enter your transaction wallets, you cannot touch the money inside.\u00a0 But, if you set up Multisig \u201c2-of-3\u201d that means \u201cregistering 3 public keys with 2 or more signatures to be accessible\u201d, even if you lose 1 secret key, you still use money. And, you should note that if you lose all of your keys, you cannot take money.<\/p>\n The process of setting Multisig up \u201c2 of 3\u201d wastes time, because you must gather 3 public keys, and build up the secret keys for each one, store it at separate places as well in some cases. If you register more public keys, you will set up more secret keys. Furthermore, you want to enhance the security, you have to conduct many steps in the Multisig wallet.<\/p>\n But, you can use DNS to simplify addresses to reduce the process of setting up.<\/p>\n Compared to regular Singlesig, this is a complex function that uses many secret keys, so there is an additional service fee for setting up and sending money to others.<\/p>\n When conducting virtual currency transactions, you need a wallet (electronic wallet). Users deposit the wallet at an exchange and make a transaction. However, users cannot directly manage the e-wallet.<\/p>\n In other words, if the secured exchange is weak, there is a chance that the secret key will be leaked, and they cannot respond to the exchange\u2019s management method. Moreover, even if the exchange supports Multisig, it is not certain that security is absolute, so you must disperse risk by \u201cnot keeping a secret key at any exchanges\u201d.<\/p>\n How Multisig works? – Source: Bitcoin wiki<\/p><\/div>\n Simply, we can imagine it as a secure deposit box with two locks and two keys. One key is held by you, and another by your mother. The only way you can open the box is to have both keys at the same time, so one person cannot open the box without the other’s consent.<\/p>\n Basically, funds are stored on a multi-signature address that can only be accessed using 2 or more signatures. Therefore, using a multi-signature wallet allows users to create an extra layer of security for their funds.<\/p>\n That is the multisig mechanism, users can look when having intention to join the virtual currencies like Etherium, Bitcoin, Ripple,… And next, we will introduce to you about 3 platforms that support Multisig in order to make it easier without coding.<\/p>\n Electrum wallet – Source: tokenhell<\/p><\/div>\n This is a wallet to manage Bitcoin on PC, as it is equipped with Cold Wallet function, and Multisignature as well in order to ensure higher security. But, this wallet doesn\u2019t support mobile.<\/p>\n How to create a Multisig wallet with ELECTRUM?<\/strong><\/p>\n This is step by step to generate Multisig that you can apply when using the ELECTRUM platform.<\/p>\n Copay wallet platform – Source: Heronyang<\/p><\/div>\n If you are using Copay, you can easily set up Multisig Wallet for Bitcoin, and this supports either mobile as well as PC.<\/p>\n Way to create Multisig address with Copay<\/strong><\/p>\n Nano wallet – Source: Medium<\/p><\/div>\n You can set up a Multisig wallet for NEM if you use Nano wallet, and this is also available for mobile and PC.<\/p>\n Step by step for installing Multisig with Nano wallet<\/strong><\/p>\n In conclusion, that is the information of Multisignature that is secure for your transaction based on the increasing number of signatures. Although it also has some disadvantages, we cannot deny that Multisig will be applied more in the near future on the exchanges.<\/p>","protected":false},"author":18,"featured_media":5847,"template":"","meta":{"_acf_changed":false},"tags":[9290,9338],"blog-cat":[2074,2058],"class_list":["post-1281","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","tag-blockchain-technology","tag-multisig-wallet","blog-cat-blockchain","blog-cat-technology"],"acf":[],"yoast_head":"\n![\"Multisig\"](\"https:\/\/cdn.bap-software.net\/2020\/10\/multisig.jpg\")
2. Pros and cons of Multisig<\/strong><\/h2>\n
2.1. Pros of Multisig\u00a0<\/strong><\/h3>\n
\n
\n
\n
2.2. Disadvantages of Multisig<\/strong><\/h3>\n
\n
\n
\n
3. Multi-sig mechanism<\/strong><\/h2>\n
![\"What](\"https:\/\/cdn.bap-software.net\/2020\/10\/what-is-multisig.jpg\")
4. Electronic wallet supporting Multisig<\/strong><\/h2>\n
4.1. ELECTRUM wallet<\/strong><\/h3>\n
![\"Multi-sig](\"https:\/\/cdn.bap-software.net\/2020\/10\/multisig-mechanism.jpg\")
\n
4.2. Copay<\/strong><\/h3>\n
![\"Multisig](\"https:\/\/cdn.bap-software.net\/2020\/10\/multisig-cold-wallet.jpg\")
\n
4.3. Nano wallet<\/strong><\/h3>\n
![\"Nano](\"https:\/\/cdn.bap-software.net\/2020\/10\/nano-wallet-multisig.jpg\")
\n