The adoption of cryptocurrencies, Bitcoin in general, has resulted in the worldwide popularity of crypto wallets. About the increased uses of crypto assets, users are also getting quite familiar with the security features of a cryptocurrency wallet. The feature of a single private key is the thing of the past. People have realized that if the wallet’s only private key is stolen then they won’t be able to ever access their assets stored in the wallet.
[sc_fs_multi_faq headline-0=”h3″ question-0=” Why do users prefer multi-signature wallets over a single private key?” answer-0=”The architecture of multi-signature wallet is more advanced and provides better security for transactions. If there is a single private key and if it is stolen, you wallet is more likely to get hacked and you may lose your funds forever. However, even if a single private key is stolen in case of a multi-signature wallet, the security of your wallet is intact as the hacker would require other keys of multi-signature wallet to gain access to your funds.” headline-1=”h2″ question-1=” . How does it become difficult to hack a multisig wallet?” answer-1=”A Multisig wallet enhances the security of the wallet. If say, a multi-signature works on 2-of-3 transactions then the hacker needs at least 2 private keys to access and steal your funds, which is least likely to happen.” headline-2=”h2″ question-2=”Which is the base technology to develop multisig wallets?” answer-2=”Multisig wallets are backed by blockchain technology that provides complete user anonymity and highly-secure and accelerated transactions.” count=”3″ html=”false”]
Therefore, advanced and enhanced architecture has been designed in the form of multi-signature to ensure more secure and authorized transactions.
What is the Multi-Signature Bitcoin Wallet?
Multi-signature wallets are also commonly known as multisig wallets. They require more than one user to sign and process the transactions. The different individuals that are involved in the transaction process are called co-signers.
Multisig transactions are referred to as M-of- N transactions, wherein ‘m’ represents the total number of private keys or signatures and ‘n’ represents the number of private keys required to validate a particular transaction. The most common types of M-of- N transactions are:
1-of-2: It signifies that any one co-signer can validate a transaction.
2-of-2: In this, both of the co-signers must sign a particular transaction to further process it.
2-of-3: In this transaction, any two co-signers out of the 3 co-signers are required to sign a transaction to validate it.
Therefore in such a way, a multisig wallet maintains the safety and reliability of transactions.
Uses of a Multi-Signature Bitcoin Wallet
The multisig wallet enhances the security feature of the wallet. In case if someone tries to hack your wallet (2-of-3 transactions), the hacker needs at least 2 private keys to access the wallet and your funds stored in it. Thus, the setup of a multisig wallet secures your infrastructure by removing vulnerabilities and security bugs.
There are some things that you need to consider when building a multi signature Bitcoin wallet. You should keep a backup of your private keys. For example, if you have secured your wallet with 2-of-2 transactions, and if you lose either of the keys then you will permanently lose your cryptocurrency. Therefore, you should keep a backup of your private keys.
Creation of a multi-sig wallet
The creation of a multi-sig wallet is not an easy task to perform. In this process, various factors need to be considered for making it a great success.
You should first decide the platform for which you wish you want to launch your crypto mobile wallet – iOS, Android, or both. If you consider launching your crypto wallet for both the platforms, it means that you can have a bigger user base and thus more profits.
Due to the increased number of vulnerabilities, vast security features should be underpinned in the wallets. Some of the advanced features reinforcing the security of mobile wallets include biometric authentication, two-factor authentication, multi-signature support, automatic session logout and more.
The interface should be self-explanatory to allow ease of use for both beginners and experienced cryptocurrency traders.
Traders may have various currencies that they trade in, thus providing them with a wallet that allows storage and management of multiple currencies at a single place is certainly a good option. Generally, the wallets offering support for Bitcoin, Ethereum, ERC-20 tokens and other Altcoins are considered to be best.
Blockchain is the underlying technology to create your own Bitcoin wallet app. It can be harnessed to provide complete user anonymity since this is something that most people seek in a wallet.
Take away
If you are considering creating your multi signature Bitcoin wallet, fortify it with the right features contributing to its world-class security and performance.
At Antier, we can help you build a mnemonics-based, semi-HD mobile wallet that supports a spectrum of cryptocurrencies. We deliver highly-secure, scalable wallets that can be linked to any crypto exchange or used as a standalone wallet app.
Our expertise lies in building a fully-customized wallet from scratch as well as delivering a feature-rich white label multi-currency wallet that can be easily customized as per your business needs and launched into the market under your brand name in just 3 weeks.
of our white label wallet or talk to our experts to share your needs for a new wallet to be built from ground zero.
