"Your keys, your bitcoin. Not your keys, not your bitcoin." Follow @mflaxman
(Click on each star rating for supporting details)FAQs
Q: Why is multisig so important? A: Multisig (with > 1 required signatures) is essential for large transactions because it eliminates single points of failure in both your hardware and software. There are so many things that could go wrong and cause you to lose funds with a single hardware wallet. You can spend an insane amount of effort to be 99.999% sure it won't happen with one signature, or spend much less effort to be 99.9% sure that each of two devices are secure. More security, less headache. See this tweet for more info.
Q: What's the best way to do multi-device multisig now? A: For now, the easiest solution for most people is to use Electrum (guide here). This is very bad for privacy unless you run your own Electrum Personal Server, which is much more complicated than just running Bitcoin Core. Hopefully, all decent hardware wallet manufacturers will adopt BIP174 in the future. Then you can get the privacy, security, and enforcement of consensus rules that only Bitcoin Core can provide, and without the heavy resources requirements of Electrum Personal Server.
Q: Why the alarmism, isn't any hardware wallet good enough? A: As any software engineer will tell you, all the modern systems we use are held together by the tech equivalent of duct-tape, and cryptography is much harder than writing regular code. It's not just an academic thing, stealing bitcoin private keys is perhaps the most lucrative use of bugs, exploits and backdoors. This talk on t...