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Author: Admin | 2025-04-28
In this article, we'll introduce shared wallets, also known as multisig (multiple signature) wallets. We'll cover their advantages and disadvantages, and provide detail on how they work in the Bitcoin.com Wallet app.Table of ContentsYou might have come across the word “multi-signature” or “multisig” during your contact with cryptocurrencies. Multisig is a cryptographic technique used in what we call a shared wallet. Before we go any further, if you don’t already know what a Bitcoin wallet is, what a non-custodial wallet is, or how to create a wallet, stop right here and read those articles.A fact that is often confused or overlooked is that in a crypto wallet, your funds are not inside the wallet - just as your debit card doesn’t actually contain your cash. Like your debit card, you gain access to your funds through a kind of password (a very long, 78 digit password) called a private key. Private keys are held in your crypto wallet, and without private keys, the associated cryptocurrencies cannot be used.Basic crypto wallets use one private key to access and send transactions while shared wallets require two or more private keys to access the funds connected with the wallet. Private keys in shared wallets are often given to different people, called participants. For example, if you have three private keys, you might keep one yourself and give the others to family members. Using a shared wallet with multiple participants might seem unnecessary, but there are many benefits.Why should I use a shared wallet?The first key reason to use a shared wallet is that it is a solution to the crypto wallet problem of having a single point of failure, which can result in losing access to your crypto assets. For example, imagine there is a fire in the apartment building you live in. Your computer and the paper backup keys for your cryptoassets are destroyed. Without the keys, you have no way to access those assets. But if your wallet is shared with others (who don't live in your building!), you'll still have access to your funds.The other key reason to use a shared wallet relates to the utility that comes with having multiple decision makers. For example, you can introduce savings for your child by providing her with some funds in a crypto wallet. If it's a shared wallet, you'll have the chance to review any transactions initiated before approving or declining.How does a shared wallet work?Recall that crypto wallets do not actually contain cryptocurrency. Wallets contain private keys that grant access to the cryptocurrency. In a basic wallet, there is only one private key connected to the wallet and that key is necessary to use the cryptocurrency. The private key is used as a mathematical signature to prove your ownership of the cryptocurrency.In a shared wallet, multiple private keys are connected to the wallet. You will have to decide how many keys will be connected to the wallet, and how many keys will be needed to approve a transaction.For example, if
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