Multisig wallet and Cold wallet
Unveiling Differences in Secure Crypto Storage
In the world of cryptocurrency, safe management of assets is everyone’s top priority. With the rapid development of the cryptocurrency world, more and more diversified Dapps have been launched one after another, and a lot of security has been introduced. Multisig wallets and cold wallets are one of the two most popular asset management tools on the market today, but they have significant differences in functionality and usage scenarios.
So, what exactly is a multisig wallet? How to use it? How does it work? This article will dive into the features and differences between these two wallets.
Multisig wallet
Multisig wallet, as the name implies, is a transaction that requires the signature of multiple parties to complete, and it is precisely because of this mechanism that it greatly increases the difficulty of stealing assets.
Vitalik Buterin, the founder of Ethereum, has emphasized the importance of multisig wallets in asset security management. Multisig wallets are different from traditional signature wallets. Multisig wallets will disperse the control of assets to several addresses. Only when a certain number of signatures are exceeded, the transaction can be approved. Even if you are the creator of the wallet, you cannot unilaterally decide and move funds.
Mode of operation:
Assume that there is a multisig wallet jointly managed by three people today. When creating the wallet, the required key combination is set to 2/3. When they want to withdraw assets, two people need to sign the contract at the same time for this transaction to be successfully sent out. By analogy, 3/3 of the key combinations require three people to sign at the same time to send the transaction.
Cold wallet
Cold wallet is also a common way to store cryptocurrency. The biggest feature is that cold wallets theoretically do not touch the Internet. Only when transferring funds, the user device needs to be connected to approve the transaction.
By not connecting to the Internet, cold wallets allow users to stay away from the threat of hackers and avoid the risk of assets being stolen.
Advantages of Multisig wallets compared to Cold wallets
Although multisig wallets are wallets built on the Internet, they are sometimes even more secure than cold wallets. Before sending any transactions, the multisig wallet needs to operate in accordance with the regulations set when creating the wallet.
Taking 2/3 of the key combinations as an example, when one of these three sets of keys is hacked by a hacker, the hacker has no way to transfer the assets in the wallet without authorization, which further demonstrates the importance of multisig wallets to avoid threats to assets through a more secure mechanism.
Although cold wallets are not usually exposed to the Internet, there are certain risks. For example, when the private key is damaged or lost, the hope of recovering the assets will become very slim; or when you want to transfer the assets in the cold wallet , you may still encounter the risk of hacker attacks when performing network authorization. If detailed information is not further confirmed when performing authorization, the assets in the cold wallet are likely to be threatened.
Tonkey
Tonkey is an advanced project that introduces multisig functionality to the TON blockchain.
To embark on your journey with Tonkey, all you need to do is visit their official website and create an account. Once set up, you can configure your multisig wallet settings, defining the number of signers, type of signers, and even set a time delay for transactions, adding an extra layer of security.
For more information about Tonkey, please enter here.
Conclusion
Multisig wallets and cold wallets are both tools designed to ensure the security of crypto assets. They have their own strengths and are suitable for different scenarios. When you make a choice today, you should choose the wallet that best suits you based on your needs and asset status.
