Replying to Avatar ShiShi21m

2/3 is the most popular setup as hiding 5 secrets requires somemore thinking.

2/3 + Coordinator File:

If you lose 1 key you're okay.

If you lose 1 key & the coordinator file you are fucked.

If you lose 2 keys you're fucked.

The coordinator file should be stored with each key & a couple encrypted cloud backups & maybe even a physical backup.

So we consider the coordinator file to be backed up at least 4-6 times.

Whereas, the key set in this scenario is only backed up 1-time.

3/5 + Coordinator File:

If you lose 1 key you're okay.

If you lose 2 keys you're okay.

If you lose 2 keys & the coordinator file you're fucked.

If you lose 3 keys you're fucked.

Store the coordinator file with each key...etc...

Coordinator File backed up 6-7 times.

Whereas, the key set in this scenario is backed up 2-times.

In backups and security there's a classic saying:

"1 is none, 2 is one".

This mantra helps to consider that losing one backup can happen, and in multisig you might not realize that you lost one...

So if you lost one more you'd be out of your coins.
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Foxfire Mushrooms 9mo ago

Awesome thanks so much for the info. Would you say that 2/3 is probably the most common setup that people use? Also, in either scenario, you do not need to know your xpub (same as coordinator file?) so long as you have all of your keys? However, as soon as you don’t have one of the keys, the xpub is required. And, the xpub is not sensitive information as far as cloud backups.

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ShiShi21m 9mo ago

2/3 is the most common.

Yes, if you have 3/3 keys you don't need the coordinator file, but I wouldn't want to be in that scenario obvz.

Xpub/coordinator file is sensitive information but not critical.

If someone gets a hold of this file they can see your entire transaction history.

Encrypted cloud backup is a good way to store it digitally, but that shouldn't be a substitute for storing it in many places physically.