Thursday, June 20, 2019

How to Create a Shared Bitcoin Wallet

Multi-signature Bitcoin wallets come with the perk of enabling two or more people to sign a Bitcoin transaction before it is sent. As such, in case of a theft, it would be difficult to move such funds without the approval of a cosigner. Therefore, this brings a need to know how to create a shared Bitcoin wallet.

A Bitcoin wallet holds the private key that is used to sign funds by a user. The user will have to manually enter their private key to load the contents of their block or use a wallet that has already loaded the private key. As such, if the key is stolen or the wallet is hacked, the attacker will be able to move virtual funds on the blockchain. Either of these can be prevented if more than one user grants approval and this means, with the use of more than one private key.

Best Multi-Signature Bitcoin Wallets

There are a number of wallets that can be downloaded which have a multi-sig feature and provide a secure way to store bitcoin. Some of these include Armory (Desktop Wallet), Electrum (Mobile/Desktop Wallet), and BitGo (Web/Mobile/Desktop Wallet).

Armory:

Armory Technologies, Inc. offers one of the best cold storage multi-signature wallets for storing Bitcoin. Its disconnection from the internet ensures that it is not susceptible to a hack. It is also worthy to note that the Armory wallet latest version 0.96.0 is compatible with computers running on the Windows, Mac, and Ubuntu Operating system.

Electrum:

The Electrum wallet for smartphones and computers comes with a multi-sig feature. It is also a cold storage wallet which is not connected to the internet. According to the platform, there are no down times, and “Electrum servers are decentralized and redundant. Your wallet is never down.” Compatibility is also provided for Windows,
Linux, Mac OSX, and Android.

BitGo:

Bitgo multi-sig wallet is one way to go if you’re looking for how to share ownership of your Bitcoin. Support has been provided to use this wallet on the web, smartphone, or computer and as such, the interface you settle for should be the most convenient. 3-of-3 authorizers where a signing with the private key of all three parties is required before a transaction can be made from the wallet.

Now, after downloading any of these wallets, you can install them on your device and then set them up. You’ll also have to generate and store the private key for each cosigner of the wallet.

Enjoyed this article?
Subscribe to our mailing list and receive the hottest news directly to your inbox!
 

More Articles