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Multi-Signature Wallets
What is Multi-Signature?
A multi-signature (multisig) wallet requires multiple keys to sign a transaction before it can be sent. Think of it like a safe that needs two keys to open.
How Does 2-of-3 Multisig Work?
In a 2-of-3 setup, you have three keys but only need two to sign a transaction. This means:
- • Your Key — you control your bitcoin day-to-day
- • Family Recovery Key — stored somewhere safe for recovery
- • Savel's Key — co-signs for extra security
Why 2-of-3 Is the Best Starting Point
The goal of multisig is to remove single points of failure. Not every quorum achieves that. 2-of-3 is the least complex setup that does it well.
- • 1-of-N is too risky — if an attacker gets any single key, they can spend your bitcoin
- • N-of-N is too fragile — lose one key and your bitcoin is locked forever
- • 2-of-3 is the balance — lose one key and you still recover; a thief needs two keys to steal
- • 3-of-5 is good for business — great when multiple people share ownership of the same treasury
The Problem with Single Signatures
A single-signature wallet has one point of failure. If that one key is lost, stolen, or compromised, your bitcoin is gone.
Real Risks
- • Lose your seed phrase → bitcoin gone forever
- • Hardware wallet breaks → stressful recovery
- • Seed phrase stolen → bitcoin stolen
- • Unexpected death → family can't access funds
Why Multisig is Safer
With 2-of-3 multisig, you can lose one key and still recover your bitcoin. A thief needs two keys to steal. Your family can recover with the Family Recovery Key. No single point of failure.