Topic: the beauty of multi sig wallet [help needed] (Read 470 times)

1. What I do on Binance P2P when buying a coin can be done by three or more people who don't even know one another with a multi sig wallet.

I will download electrum, because it was recommended. How does the signing and signatories work?

seems electrum can open LN channels now.

Yes, each wallet will need its own seed phrase. Electrum seed phrases have a built in versioning system, which means each seed phrase will only generate one type of wallet.

However, Electrum will no longer generate legacy (standard) wallets by default, only segwit ones. If you desperately want a legacy wallet then it can be done via console commands, but I'd recommend just sticking to segwit.

Secondly, be aware that 2FA wallets have nothing to do with the multi-sig set up you were discussing earlier. 2FA wallets use a third party to cosign your transactions, and they charge a fee to do so. If you really want one you can of course generate one, but for your multi-sig set up between computer and phone you shouldn't be using them.

On Electrum for mobile, open the wallet, tap the wallet name at the top left, tap "Wallet details", and then "Delete Wallet" at the bottom.

That's OK. It's not the most straightforward process.

So yeah, the only thing which you should share between your wallets is your master public keys. These will be long strings of characters which begin with "Zpub". You can either transfer these via QR code, via a file, or typing them by hand (but make sure to triple check you didn't make a mistake).

Once you've successfully set it up the wallet, you should fund it with a very small amount of bitcoin. Ensure you can spend it using your phone and laptop together, and also ensure you cannot spend it using just one device.

Oops! Even when I thought I got it right. Thanks for the follow up, I will do it again the right way. It is better I didn't do it than do it wrongly.

You don't have to regret what you did, it happens to most newbies, but you must not force them to immediately switch to decentralized exchanges like Bisq, you can just slowly integrate them with decentralized exchanges and let them know what the advantages are, after sometime they will probably see the benefits and make the switch themselves when they have enough knowledge about things.

I think the main reason newbies begin with Binance is reputation. You will not prefer to begin your journey with a peer-to-peer network, if you don't understand how that works; instead, you will pick the first exchange Google will return you, according to reviews.

[...]

Greed and laziness are the main ones.

So by doing this, you have lost all the security of the multi-sig.

By typing the seed phrase from your phone in to your laptop, the wallet on your laptop now contains two seed phrases - the one the laptop generated, and the one you entered from your phone. This means it has all the information needed to spend your coins on its own, without requiring any input from the wallet on your phone. Although you still have a multi-sig wallet, the compromise of a single wallet (the one on your laptop) will let an attacker steal your coins.

You'll need to start again from scratch and make sure the seeds phrases stay completely isolated to the devices which generated them. The only thing you should be transferring between devices are your master public keys.

I was given one file to share, but at a time I couldn't see the file to share. I had to alternatively type in the seed phrase from my mobile to the laptop and that served as the master key.

Download the electrum wallet and launch the wallet.

1. Select multisig wallet in the first step.
2. In the next step, select how many total cosigners will be there and out of the total cosigners, to execute a transaction, how many will have to sign the transaction. Say, a total of 2 cosigners will be there and from the 2 cosigners, 2 cosigners will have to agree to send funds from the wallet. It's 2 of 2.
3. Create a new seed
4. You will be given a master public key. Send it somewhere.
5. Ask your cosigner to do the same.
6. In the next step, you will be asked to add cosigners. Ask for the master public key from your cosigner and add it by selecting "Enter cosigner key", ask your cosigner to do the same.
7. You have created the multisig wallet. Check addresses in your wallet and in your cosigner's wallet. Make sure they are the same.

I used multisig wallet long ago and totally forgot how to spend lol. The basic is, out of the 2 consigners, anyone will create a transaction that will be partially signed and save the partially signed transaction data and send the file to your other cosigner. He will have the option to sign the transaction by accessing the transaction through the file you sent. That's it.

In case, you need help, feel free to reach out to me. Don't trust anyone with a big sum of money, not even with a small sum unless they are reputed. Be sure that I will not PM you first.

I feel regret now because the few people I introduced to cryptocurrency, the first place I took them to is Binance and they made account and KYC, they buy coins and sell and make profits and they are happy at me and with themselves.

I feel regret now because the few people I introduced to cryptocurrency, the first place I took them to is Binance and they made account and KYC, they buy coins and sell and make profits and they are happy at me and with themselves. But I now feel like I lead them through the wrong part. It is not totally my fault, but I acted according to the information available to me as at then.

Is Bisq running on Bitcoin network? Because as Bisq was launching I saw these;
Connecting to Bitcoin network...
Synchronising with Bitcoin Mainnet (via Tor)...

Since I now have my backup and seed phrase saved, am  I free to use Bisq as a personal wallet?

Since there is no KYC, if illegal activities are carried out on Bisq, is there a way government will trace it since Bisq doesn't have a CEO and not centralized ?

Why do most people not use this type of system that guarantees privacy, rather many people troop into centralized exchanges like Binance and even use it as wallets.

Now they've transitioned to a 2-of-2 multi-sig between buyer and seller only, without Bisq having a private key at all. The system is otherwise the same as above, but now additionally both parties also sign a timelocked transaction which empties the multi-sig in to the Bisq DAO, which can be broadcast after the timelock expires in the event of a dispute.

Each trader must lock bitcoin in a multisignature escrow until the trade is complete—this is part of what makes trading on Bisq highly secure.

Bisq does not hold any bitcoin. All bitcoin used for trading is held in 2-of-2 multisignature addresses controlled solely by the trading peers themselves.

Is there such truly decentralized and functioning exchanges. Please point me to it.