Question about multisig with a geographically-dispersed group of people.
Howdy folks, so
the q is pretty simple. after much studying, i am confused about this part if u have a 3/5 multisig, say and 5 people are spread out all over the world,
and ofc bitcoin wallets are HD, so if person A create 5 addresses, at the same time person B creates 10 addys, person C creates 25 addresses and person D creates 0 addys, my q becomes
- How will their wallets "sync" so that their wallets see the addresses the others create (i do not think that happens),
2) If person d creates addresses after the fact, the first 25 addys will be already generated by person A, B and C so will their wallets just keep
increasing the balance (assuming funds were sent to those addresses) as it scans the blockchain?
3) also what stops address reuse?
multisig isnt.. synced enough for my taste so that person a can generate an address and B, C, and D can then see the address - and the label
as otherwise without coordination in say a chat somewhere, they will be walking all over each others toes with addresses having varying labels and
alot of misuse. or am i wrong?
test case was say 5 founders of a start-up business who are using a btc multisig to accept company payments
and send invoices and they want to ensure that there is no overlap or reused addys and also that each wallet is a full syned copy of everything
everyone else sees...
4) and how can some of their wallets (say person C and D) wallets see funds if they have not generated the addresses that others have yet?
or if some people generate addresses andothers do not, without syncing, how will anyone of them know? ideally there would be some sort of syncing mechanism or say a file that can be sent to all others whenever there is a new addy created or a label change so all of the wallets stay in sync? or am i
missing something. if person A receives 1btc on the multisig wallet with a newly generated address (say address #15 ) , will person B, c, and D
even know about it until they generate the address and their wallet (i am using electrum) generates the same address and scans the blockchain
(unless prompted to) and is like oh yea, there are already bitcoin here.. So multisig for 2 people muchless 5 becomes really messy really quick.
Unless i am missing something.
I understand that the signed tx has to be shared and signed by the keyholders before it is broadcasst, but I do not understand how say person C or D could sign a tx that person A or B created using an addres or funds that their client doesnt even know that they have. Unless you have to manually tell each person to generate X many addresses so that the wallets are watching them, and verbally tell people which addys are allocated for which people, and then the people have to inform everyone that say address 1 and 2 are spent in their allocation block.. And to set the labels. That becomes very tiresome just keeping a group of pple in sync. More people, the tougher it gets. Please, do correct me if i am wrong.
Anyone have any insights?