_ Here's how it works: Anybody can ask a question Anybody can answer The best answers are voted up and rise to the top up vote down vote favorite 8 What are multi-signature transactions, and why might they be used?Also see: How does one make multisignature transactions with the bitcoin client?How can I create a multi signature 2-of-3 transaction?transactions multi-sig-transactions up vote down vote A multi-signature address is an address that is associated with more than one ECDSA private key.The simplest type is an m-of-n address - it is associated with n private keys, and sending bitcoins from this address requires signatures from at least m keys.A multi-signature transaction is one that sends funds from a multi-signature address.The primary use case is to greatly increase the difficulty of stealing the coins.With a 2-of-2 address, you can keep the two keys on separate machines, and then theft will require compromising both, which is very difficult - especially if the machines are as different as possible (e.g., one pc and one dedicated device, or two hosted machines with a different host and OS).

It can also be used for redundancy to protect against loss - with a 2-of-3 address, not only does theft require obtaining 2 different keys, but you can still use the coins if you forget any single key.This allows for more flexible options than just backups.It can also be used for more advanced scenarios such as an address shared by multiple people, where a majority vote is required to use the funds.Multi-signature transactions are often conflated with BIP 16 and 17.In fact they are not directly related.Multi-signature transactions have been supported by the protocol for a long time; but implementing them would require a special output script.What BIP 16/17 do is offer a standard way to encapsulate a script within an address; this makes it easier to use advanced scripts, with the most prominent example being multi-signature transactions.up vote 6 down vote Enjoy!"Bitcoin Faucet Hacked" How a future version of the Faucet will work to prevent a similar incident: /2012/03/bitcoin-faucet-hacked.html "BIP 16 / 17 in layman's terms" /index.php?topic=61125.0 "The Truth behind BIP 16 and 17" /the-truth-behind-bip-16-and-17/ up vote 2 down vote Multisig have lots of uses, wallet sharing, increased security and escrow to say the first that come to mind.

Increased security: 2FA purposes or even help provide services like double spend prevention and instant confirmation.bitcoin kraken exchangeIf you want to try an open source wallet with all these features in action try https://greenaddress.it It allows you to smoothly create P2SH Multisig transaction but with a simple intuitive interface that hides all the complexity.washington bitcoin farmup vote 0 down vote An example applying a Multi-Signature transaction in the hospitality industry!bitcoin donation scriptThe transactions of this form demand the assumption that from N public keys which remain stored in the Locking Script, at least M (N≥M) from these must create valid signatures, which are found on Unlocking Script, in order the amount of bitcoins to be transferred to the wallet and the bitcoins to be spendable afterwards.where to get bitcoin hash rate

This procedure of authentication essentially is happening for keeping the funds secure which are stored in a Multi-Signature address of a digital wallet and not to be feasible to be spent by anyone who has access to the wallet.is bitcoin viableThis procedure depends on the scheme M-of-N.litecoin trading platformTherefore, in order someone who wants to create a Bitcoin Multi-Signature address needs the combination of several private keys.This specification is visible also in the morphology of this kind of addresses as these addresses are not starting with the number 1 as usual, but with number 3.Let’s see an example for clarification.Imagine that the last class of a high school in Thessaloniki (Greece) wants to travel for educational purposes for one week (6 nights) to Barcelona (Spain).The school is going to stay in the “Hotel X ”.

The hotel accepts bitcoin payments and has a policy that for charges above 5000 euros ≈ 9,29 BTC (26/9/92016) the funds must be stored in a Multi-Signature address owned by the hotel.The school is going to pay for the reservation 10,800 euro≈ 20,06 BTC in total (60 students * 6 nights * 30 euros/night).So, the wallet of the school has to form a Multi-Signature transaction in order to pay.The administration of the hotel has decided that in order the hotel to take advantage of the funds above 5000 euros the transaction must be signed at least by 2 out of 3 signatures of the below authorized recipients : • Mary (Financial Controller) • Pedro (IT Administrator) • Adriano (CFO) So, the scripts of this special transaction will look like: • Locking Script Scheme 1: Locking Script of a Multi-Signature Transaction • Unlocking Script Scheme 2: Unlocking Script of a Multi-Signature Transaction • Validation Script Scheme 3: Validation Script of a Multi-Signature Transaction Finally, in our example Pedro and Adriano have to sign with their private keys in order the hotel to be able to spend in the future the amount of bitcoins stored in this transaction.

*All the names used incidentally for the purpose of the example.Your Answer Sign up or log in Sign up using Google Sign up using Email and Password Post as a guest Name Email discard By posting your answer, you agree to the privacy policy and terms of service.Browse other questions tagged transactions multi-sig-transactions or ask your own question.The resource requested could not be found on this server!Bitcoin Price at Record High Bitcoin price has set a new record high of $2,700 this week.Some say it will exceed $10,000 a Bitcoin!The current... Altcoins / Bitcoin / Law / News Bitcoin enthusiasts are rejoicing regulations that move to set Australia at the top-tier of cryptocurrency encouraging countries.The laws going into effect prevent double taxation...Crime / News / Scams / Security Bitcoin Ransomware Plagues Landscape Noone likes a shakedown.Rather, noone wants to be the target of a shakedown.However, where there’s a will theres a... Exchange / Invest / Law / News SEC Rules against Winklevoss Twins Bitcoin ETF The digital currency community hotly anticipated a ruling from the Security Exchange Commission on the Bitcoin ETF.

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