Multisig: A beginner’s guide

Multisig: that record that everybody is articulate about on Bitcoin forums. It sounds cool, creates wallets some-more secure, allows for some-more corporate use cases, creates trustless escrow/arbitration possible, and generally solves lots of problems. But really, what is it and how do we use it?

bitcoin walletLet’s puncture down and get dirty: how do Bitcoin wallets work? For a consequence of this essay and though stealing too complicated, we can contend that Bitcoins aren’t indeed changed between addresses, though rather they always only lay in an invisible vault. Also, iinstead of promulgation them, we indeed only change a locks.

For example, when Alice creates a simple, normal Bitcoin transaction to Bob, she’s indeed only stealing her close from a safe with her key, and putting Bob’s close on it (which Bob can after mislay with his pivotal and so on).

If we review my article on PGP (specifically a partial about uneven cryptography), this competence make some-more sense: a close is a open key, and a pivotal is a private key. Everyone has a duplicate of Bob’s lock, so they can encrypt anything they wish for him. Or, in this case, close Bitcoins

Read more ... source: