Topic: Multi-Sig Strategy to Keep Bitcoin is not the Ideal Solutions for Individuals - page 2. (Read 262 times)

If you have experience about how you can setup a multisig wallet, it is worth it.

You will setup the multisig wallet on different devices. Example is the 2-of-3 multisig wallet, it requires 3 devices. Multisig wallet is one if the safest bitcoin wallet, even if created on online devices.

Read what I posted above.

With 2-of-3 multisig wallet, I do not think a passphrase is necessary.

I have two mobile devices and a laptop, I can think of 2-of-3 multisig wallet. Or if you have a hardware wallet, a phone and a laptop, you may prefer a multisig wallet.

This has actually been discussed by some prominent members or say experienced members before. It is simply burdensome to have a multi sig for personal use, the risk somehow lessens but when you think of burden you will consider it not that worth it. Imagine using one device to sign the transactions from the multi sig, once the device become compromised you the other co signer keys also get affected since it is on this device.

As for paper storage it is also a burden because how will one back up the seeds and keys. Imagine a 2-3 multi sig, you have a 3 private keys and 3 seeds to backup making it six backup places to store them ( although you can have one single seed for all ). And if a passphrase is added then it adds to the number of backs. Storing all of them will definitely leave some vulnerable to been seen

The convenient of will be a single sig with probably a passphrase on an airgapped devices.

If you want to increase the security of your wallet, you can go for multisig. Although, it is very useful for multiple users purposes. For individual, we have suggested 2-of-3 multisig wallet several times on this forum with the appropriate backups like this:

Seed 1, MPK 2
Seed 2, MPK 3
Seed 3, MPK 1

Backups in different locations. If you lose one of the backups, you can still use the other two to recover your wallet.

In one of Antonopoulos recent video, he questioned the idea that having a multi-sig strategy to keep you bitcoin is not the ideal solution. For summary, in the video, I have provided the link at the footnote, he stated that MultiSig's primary purpose is to provide separation of concerns or duties for controlling funds in scenarios with multiple independent actors. According to him, MultiSig is suitable for cases where corporate executives or board members jointly control funds, and a certain number of them must collaborate to access funds without the risk of a single individual stealing everything which makes sense.

Each person involved in a MultiSig setup must have adequate backups of the seeds used to create the MultiSig address. Becasue losing a seed can lead to a dangerous failure mode where the MultiSig cannot be reconstructed. From what he said which we already know, MultiSig addresses are generated from a script involving multiple public keys, and the address requires all public keys to be provided for spending, even though only a subset is needed for signing.

He goes further to say that while MultiSig provides redundancy for spending (e.g., 2 out of 3 signatures required), it demands full redundancy for public keys, and it is therefore risky for individual users who may not have the necessary backup redundancy, because if they lose a single seed, they have lost all access to funds. Do you agree with him that multi-sig strategy is not the ideal solutions for individuals? What do you think?

YouTube Video link: https://www.youtube.com/watch?v=sjS5qF65Yos