Can someone explain MultiSig to me like I am a noCoiner?
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Imagine a bank account with co-signers where more than one signer must authorize transactions.
Woww! 🙏 so helpful
It's like having 3 locks on a door and you need at least 2 keys to open it. This means you can either hold all 3 keys yourself in different locations or have different people hold different keys.
Is that something I can create to any wallet or just specific ones?
Lets say I use ledger (ignoring all the controversy around it for a moment) can I make a multisig for my wallet?
It takes some effort as you need to run your own node for a DIY multisig. The below guide is pretty good
I think of it like cheques in the legacy system.
Most organizations require two signatures on a check. Owners, finance team, board of directors, etc.
This is meant to reduce fraud risk and eliminate the single point of failure.
Cheques cannot be written and payments cannot be made without having two signatures on the cheque.
With multi sig, this provides the same function only for bitcoin. So you can’t move any bitcoin out of the wallet unless you have two signatures.
It’s a great set up for advanced users and organizations.
There are better ways of eliminating the single point of failure for people who are newer to bitcoin.