What is Multisig - Meetup#7 - 2022-12-08

Transcript

1. Meetup # 7 – December 8, 2022 Meetup # 7 – December 8, 2022
2. 2 Agenda Agenda Introductions Purpose: “Our mission is to share bitcoin knowledge, tools, and resources in order to grow adoption within the local Round Rock community.” Location(s): Lamppost Cofee (Oshi Gift Cards) Library $179 / hour Baca Center ½ that price Bitcoin Happy Hour at BrassTap or Alcove Rules: No shitcoining No pictures/video unless we agree ahead of time Chatham house – speakers should not be attributed Announcements: OshiApp Lamppost Gift Cards The Bitcoin Company Honey Badger – Free Sats! Circular Economy (Satoshi Square) - Azteco Vouchers Bitcoin Magazine Sponsorship? BTCPayserver for Donations Stickers from MVDEX Onboard local businesses Questions: Who has made an on-chain bitcoin transaction? Who has made a lightning transaction? Who is running a bitcoin full node?
4. 4 Connect to our node Connect to our node 02dd5649b3b872024e6c9cac775fdea95f08c05a5fa9575e96e214b6a90baed438@z7wmavvxd irafksqhm2mwmfvujymsfzwyf7tzitmrzfgn6fynn2fioqd.onion:9735
5. 5 Donate some sats to our BTCPayserver Donate some sats to our BTCPayserver
6. 6 We did a thing in Mexico We did a thing in Mexico Who says you shouldn’t get married in a bear market?
7. 7 Playa Del Carmen – MX Playa Del Carmen – MX • Effectivo Electronica • Ripe for adoption • Proof of work • Handed out more than 35 bitcoin tips via Azte.co vouchers both lightning and on-chain
8. 8 We had a reel good time! We had a reel good time! Even our fishing charter heard about bitcoin
9. 9 The signs were everywhere The signs were everywhere
10. 10 Some things to be bullish about Some things to be bullish about PlebDev Course https://stacker.news/items/102733 Blockchain Commons https://github.com/BlockchainCommons/Learning-Bitcoin-from-the-C ommand-Line BTCMaps – Lightning Tips for Taggers https://btcmap.org/leaderboard
11. 11 Bitcoiner News Bitcoiner News 8 methods in which your change address can be identified (including wallet finger printing) https://sovrnbitcoiner.com/8-methods-in-which-your-change-address-can-be-identified/ ZeroConf TX – Bitcoin Core Update Controversy https://medium.com/coinmonks/bitcoin-core-24-0-will-enable-full-rbf-the-end-of-unconfirm ed-transactions-e684a5f41fe2 Antoine Riard – Reputation credentials proposal to mitigate LN jamming attacks https://bitcoinops.org/en/newsletters/2022/11/30/
12. 12 WTH is a MultiSig? WTH is a MultiSig? Multisignature Multisignature scripts set a condition where N public keys are recorded in the script and at least M of those must provide signatures to unlock the funds. This is also known as an M-of-N scheme, where N is the total number of keys and M is the threshold of signatures required for validation. For example, a 2-of-3 multisignature is one where three public keys are listed as potential signers and at least two of those must be used to create signatures for a valid transaction to spend the funds. 2 of 3 Multisig schema
13. 13 Benefits of using multisig Benefits of using multisig Key distribution Add a layer of physical security requiring an attacker to be in more than 1 place at a time. Removes single point of failure If one of your keys is lost/stolen your funds are still SAFU Diversify Risk Multiple manufacturers to mitigate exploits of a single HW Wallet company Escrow Transactions Escrow is a legal arrangement where a third party holds funds until certain conditions are met. If there's a dispute, only A or B will authorize the transaction, allowing C to make the final decision. Two-Factor Authentication (2FA) Multi-sig can also serve as a form of two-factor authentication (2FA), because users can hold private keys on different devices. However, there are risks associated with using multi-sig technology as 2FA because a device holding one private key can be lost, stolen, or broken. For example, if the wallet signature is set as 2-of-2, losing a key on one device would make it impossible to recover funds. What are some other benefits?
14. 14 Pitfalls of using multisig Pitfalls of using multisig Advanced Setup Additional layers of complexity means additional possibility of effing it up. No single point of failure, but potentially multiple! More things to keep track of More seeds to backup - Where will they all be stored securely? More devices to secure - Where will they all be stored securely? A backup of all public keys - Loss of 1 seed + 1 public key = no chance of recovery in a 2-of-3 setup Script type and derivation paths used - Generally standardised but useful in emergency recovery situations Use Testnet Enable testnet when you set this up and test recovery multiple times before trying on mainnet Have any of you tried installing one of these?
15. 15 Guides for using multisig Guides for using multisig Bitcoiner.Guide Multisig Recommends using Specter wallet with backup and restore steps using Sparrow Wallet Orange Surf Multisig Guide Instructions for basic 2of 2 and 2of 3 multisig using Sparrow Wallet Have any of you tried using one of these?
16. 16 Semi-custodial multisig options Semi-custodial multisig options Unchained Capital You hold 2 keys, they hold 1 Casa Hodl 2 of 3, 3 of 5 and higher level tier options for a fee Swan-Specter Integration Collaboration with Swan Bitcoin and Specter wallet for easy purchase to multi- sig workflow TBD Have any of you tried using one of these?