15 out of 15 Multisig Project
Today I made a bitcoin wallet with 14 of my new friends.
Using the free, open-source software of Bitcoin and Electrum Wallet, 15 people who don’t know each other were able to join together and cooperate to transfer bitcoins and donate to developers who are working on advancing Bitcoin multi-signature wallets.
A multisig wallet is one in which multiple private keys are required to sign in order to transfer funds. This is often used for enhanced security in business or long-term savings scenarios. Common multisig configurations are 2 out-of 3 or 3 out-of 5. In these schemes N of M signatures are required to transfer funds.
This can be helpful if someone wants to divide keys between home, work, trusted friends or family, lawyers, safety deposit boxes, etc. No one single point of failure can result in either lost or stolen funds.
In business scenarios, partners can ensure that funds are only spent for appropriate purposes. They can prevent embezzlement, misallocation, or theft of funds.
Multisig has massive advantages over the traditional single-signature standard wallet configuration that most are used to. We recommend that everyone reading this to do their research and see how multi-sig may help them increase their security.
What we decided to do, though, is something entirely different.
In a dedicated telegram chat, over the course of just a few hours, a team of 15 strangers decided to take multi-sig to its most extreme capacity.
With a 15 out of 15 multi-sig wallet, every single individual is required to transfer funds from the wallet. If one party fails, refuses, or is unable to sign a transaction, then the bitcoins are stuck in that wallet permanently!
There is no practical scenario in which this would be an ideal security model to protect bitcoins. Even in a multi-billion dollar custody situation, that many keys are just too complicated to manage.
That is why we set our mandate as simple and brief, as a “proof of capability”:
- Create a 15 out of 15 multi-sig wallet
- Send funds to the wallet
- Send funds out of the wallet
As far as we are aware, this has never been done or even attempted before.
And so it happened! This risky, reckless, yet trust minimized cooperative was quickly formed from volunteers on Bitcoin twitter and within hours the wallet was formed. Though initially cautioned to hold off sending funds, anxious members swiftly sent over funds and gleefully watched the transactions confirm on each of their devices.
What was purely a function of mathematics felt like magic as the wallet appeared independently on each person’s screen!
After finalizing the setup and funding, we began the process of actually spending the funds. If this was unsuccessful, then all that was done until now would be for naught; wasted time and lost bitcoins.
Although some obscure technical difficulties slowed the process for a number of hours, in the end, we managed to produce a fully functional 15 out of 15 wallet which we all could sign from!
Partially signed Bitcoin transactions (PSBTs) were passed one-by-one amongst the 15 signers. With even one signature missing, a lost cause.
With each progressive signature, excitement built. Was it really possible; could 15 disparate people across the world really organize in such a specific way to make this happen?
Finally as the last signature was made and the transaction was broadcasted to the network, both a sigh of relief and an overwhelming feeling of joy melded in the satisfaction that something new and powerful had been achieved.
You can see our transaction here: https://blockstream.info/tx/6e5e86c26830fec801f0f8c0943d908219e000877184f098f93b78faa702bd33
Proving the power of Bitcoin, the power of multisig, and the power of individuals joining together to move technology forward and to raise funds for open-source software.
Our funds were donated to two specific developers who are both working on bitcoin multisig projects.
Check out Kevin Mulcrone and his Lily Wallet.
Check out @_benkaufman and his Specter Desktop.
