This article will elaborate how BOX’s approval flow feature brings more security and a dedicated management tool to corporate users having concerns with muti-signature.
According to CryptoCompare.com, Multisignature addresses are like joint bank accounts where the transactions must be authorized by more than one signature holder. This is extremely useful in order to execute transactions where trust hasn’t been established or to create community managed funds.
Furthermore, this feature can be applied to personal fund management as well as to donation programs or organization.
In the case of a donation, trustees agree and sign the process for donating the fund to a project’s cryptocurrency account. The private is used to confirm the fund transfer and the operation is visible on the blockchain which shows accountability. For an organization, the funds are locked until every assigned authorities agree to make the transfer.
However, frequent use and feedbacks demonstrate that multi-signature should be improved for enterprise-grade crypto assets management:
- Problem 1) Not all blockchains support multi-signature
Mainstream tokens BTC, ETH support multi-signature, but if the company has other altcoin assets without multi-signature support, then they have to be dealt differently.
- Problem 2) Signature holders have to manage different private keys for different chains
BTC, ETH, EOS, XRP and etc, each employee dealing with token transfer need to have different private key to interact with different chains. Which is not so easy to manage.
- Problem 3) The amount of a transaction and the role of the signature holders are not considered by the multi-signature
Imagine one staff needs to transfer 0.1 BTC for event ticket, he or she has to ask for CEO’s signature, which is a little bit ridiculous.
BOX brings a suitable solution to corporate users by offering a multi-standards wallet not limited to BTC and ETH by a single private key, and an approval flow for creating various spending scenario and follow-up processes.
- Solution for 1+2) BOX allows at least 3 shareholders to generate 1 private key together, and use this private key to control all the connected chains
Because this shared permission is achieved by dividing ownership of 1 private key, irrespective of a connected chain supports multi-signature or not, it will always work and furthermore, each staff only needs to remember one password to authorize all transactions.
- Solution for 3) BOX requires all shareholders’ confirmation to validate an approval flow defined by a manager, and all the later transfers must collect approvals in line with the flow.
The steps in detail are:
- Manager creates the approval flow as shown in the left screenshot, it can define transfers within what amount, min people on each level should approve, and more.
- All shareholders who generated private key earlier need to confirm the flow to make it valid.
- When anyone creates a transfer request, it should always follow a defined flow and collect required approvals by levels.
So for the 0.1 BTC event ticket case, there could be a predefined flow saying if amount < 0.25 BTC, then as long as the department manager approves, this transfer will go through. No need to bother the high-level shareholders about this tiny issue any longer.
Multisignature is an innovative technology which helps deal with certain crypto management scenarios, while it’s far from enough for enterprise-grade use. Based on more comprehensive consideration and practice, BOX system is tailored to fill the gap.
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