What is Multisig and how it works with Trezor? (2024)

FAQs

Does Trezor support MultiSIG? ›

Multisig. It is possible to use MultiSig in Electrum with Trezor device.

Multisig, also called multisignature, is the requirement for a transaction to have two or more signatures before it can be executed. Multisig provides more security than single-signature transactions. In a multisig transaction, at least two signatures are required to approve a transaction.

Pitfalls of Multisig

Complexity and convenience - for one person to retain control over their own crypto funds in a Multisig setup, they have to solely control multiple devices. Even Bitcoin-only Multisig wallets can be way too complicated for individual users. A backup strategy is a must!

Multisig wallets require two or more private keys to execute any transaction, enhancing the security level of the stored assets. This is a stark contrast to traditional wallets, which are controlled by a single private key.

For example, a 3-3 wallet is a multisig wallet that is shared by three people and requires three signatures to sign a transaction. A 2-3 wallet is a multisig wallet that is shared by three people and requires two signatures to sign a transaction. You may also see “2 of 3” to indicate the number of copayers needed.

Vulnerabilities in the wallet software or the underlying blockchain network can be exploited by attackers to gain control of a multisig wallet.

Multisig wallets may implement an N-of-N setup where all signatories must validate a transaction before. The similar example is a 2-of-2 method where two parties must validate a transaction for it to be considered valid. Alternatively, an N-of-M setting requires a specific subset of signers to approve a transaction.

Key Takeaways

Multi-signature crypto wallets provide added security for crypto assets, but they also have more technical requirements to set up. Multi-sig wallets are designed to minimize the chance that digital assets can be stolen using only a password or wallet key for access.

What is the difference between Multisig and multiple wallets? ›

The key difference between MPC and multi-sig wallets is in the signature process. A multi-signature wallet employs separate signatures from different private keys for security, while MPC generates just one signature, irrespective of how many shards of the private key contribute.

In technical terms, Sui supports k out of n multisig transactions, where k is the threshold and n is the total weights of all participating parties. The maximum number of parties is 10. To learn more about the single key signatures that Sui supports, see Signatures.

This is done by signing the transaction multiple times, once with each private key. The order of the signatures matters and must match the order of the public keys in the multisig key. Once you have a transaction with the necessary signatures, it can be broadcasted to the network.

In the case of Bitcoin, Multisig was introduced by BIP11, which described m-of-n standard transactions, allowing for up to 3 co-signers. These kind of scripts used P2SH addresses, starting with the character '3'.

Cryptocurrency stealth addresses are blockchain addresses that are different from your actual wallet address. The intent behind them is to attempt to provide or enhance the anonymity that blockchain is supposed to possess.

Security: Trust Wallet doesn't offer two-factor authentication or multisig functionality, which are ways users can control access to their funds.