What is a Multi-Signature Wallet?
“Multisignature (multisig) refers to requiring more than one key to authorize a Bitcoin (or other cryptocurrency) transaction. It is generally used to divide up responsibility for possession of bitcoins. Standard transactions on the Bitcoin network could be called “single-signature transactions,” because transfers require only one signature — from the owner of the private key associated with the Bitcoin address. However, the Bitcoin network supports much more complicated transactions that require the signatures of multiple people before the funds can be transferred. These are often referred to as M-of-N transactions” — Bitcoin Wiki
It is no secret that VegaWallet’s mobile and desktop consumer wallet is currently one of the first products to use BitGo multi-sig implementation. BitGo is a popular custody solution and wallet provider that supports multi-signature integrations for Bitcoin, Dash, Litecoin, Zcash, and other major cryptocurrencies.
Their service creates and provides authorization keys to sign a transaction. Two signatures are required on every transaction of a wallet associated with BitGo. In the most usual case, this would be completed by both the end-user (you) and BitGo themselves. The end-user passphrase is created upon account set up in either our mobile or desktop wallet and is the sole responsibility of the account owner. Users must log in with the correct username and password combination and also provide the correct passphrase (or private key) in order to send a transaction. If a user presents the correct login information and incorrect authorization keys, then the wallet will be treated as “read-only” which allows the user to view balances, however, they can not transact with any associated blockchain address.
In using this multi-signature architecture to sign and enact transactions we can eliminate single points of failure most commonly associated with other wallets. Keys can be distributed or held with different storage techniques which according to BitGo is “considered mandatory for high-security blockchain applications.”
BitGo multi-signature integration is also integrated into several of VegaWallet’s upcoming products including our complete payments system and advanced cryptocurrency exchange. While storage techniques may be slightly different in applications featuring our exchange architecture, we can guarantee the safety of user’s funds at all times. The application of Multi-Sig into our payment applications also delivers one of the most secure, and widely accessible, cryptocurrency payment architectures.
To learn more about VegaWallet’s platform and upcoming product releases please visit our website at https://VegaWallet.com
Our Consumer Wallets are also available for download for iOS and Android on The App Store and Google Play. Our Desktop wallet is currently available for download on our website. If you are interested in using our upcoming payment architecture to help future proof your business please access the “Business — Overview” tab on our web portal.
