Subnostr

Replying to

Camila 🧡

Good morning! ☀️

By using #Bitcoin as a savings plan, you are essentially buying back the greatest asset of all… TIME.

That is where the true wealth lies.

bc21 1y ago

Good morning! Yes, stay humble and stack zaps

Replying to

Blockstream

As BTC climbs, understanding wallet tech is more critical than ever. In a world where value rises and risks multiply, holding your own keys is your first line of defense.

This thread explores singlesig vs multisig wallets.

Don’t wait for disaster - know your options. 🧵

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When it comes to Bitcoin wallets, a single private key provides total control - but also total risk.

Creating a singlesig wallet means backing up one 12-24 word seed phrase that represents the one private key that controls your Bitcoin.

But if you lose that key - those 12-24 words, whether stored on a hardware wallet or engraved on metal - your Bitcoin is gone. Permanently.

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Creating a multisig (multisignature) wallet, however, adds another layer of security.

Multisig requires multiple keys to authorize transactions, adding redundancy. Common setups like 2-of-3 or 3-of-5 make it much harder for attackers to access your funds.

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Setting up a multisig wallet comes with its own complexity. It’s not as simple as backing up more seed phrases - you’ll also need to back up the wallet descriptor.

Blockstream Jade natively handles this, storing multisig wallet descriptors with essential data like wallet fingerprints, derivation paths, and the extended public keys of all wallets in the setup.

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With multisig, you might hold two keys on separate hardware wallets in different locations, while a third key is held by a trusted party.

Many companies offer multisig services to help you manage these setups, allowing you to distribute keys securely.

They won’t be able to spend the funds alone, but can assist if you lose a key.

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Blockstream Green’s 2-of-2 multisig 2FA-protected accounts offer another approach to multisig.

The first key is on your device, protected by a PIN and backed up with a 12- or 24-word recovery phrase.

The second key is held on Blockstream Green servers, protected by two-factor authentication (2FA) that you control on a separate device using an authenticator app.

https://blockstream.com/green/

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Now, even if someone gains access to your device or PIN, they can’t spend your funds without your 2FA method.

Even with your recovery phrase, 2FA is essential. However, if you lose access to your 2FA method, you’ll have to wait until a ~365-day CSV timelock expires to regain access to your funds.

https://help.blockstream.com/hc/en-us/articles/900001391763-How-does-Blockstream-Green-s-2FA-multisig-protection-work#h_a0e00982-eb22-42f9-af2f-997bf0f67a09

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In an age of data breaches and physical threats, multisig can help protect your holdings even if one key is lost or compromised.

As a technology, it’s valuable for long-term cold storage, for enterprises splitting keys between executives, as a foundation for inheritance planning, and so much more