“BitHD Multisig Partnership Plan” and Technological Walkthrough
By: Bitpie Wallet
Tags: Bithd, Security, Multisig, Blockchain Technology, Crypto Wallet

The following is the walkthrough of Multisig technology:

1. A Quick Walkthrough of Multisig Basics

2. Why did we set 322 (March 22) as a multi-signature day?

First, from the date, the Bitpie proposes to set the annual “March 22” as the “Multiple Signature Day” because 3/2 and 2/2 are very common multi-signature schemes (of which 2/2 are widely used in the Lightning Network), it makes sense to define 322 this day as “multi-signature day”.

From the original intention of launching this activity, as one of the few wallet teams that have no security incident for 6 years, we have seen too many cases of losing money, and many of them have failed to use the multi-signature scheme reasonably. These grievous money-losing accidents have led to the collapse of one’s family, and some have led to the fall of the team, which is a serious obstacle to the upward development of the blockchain sector.

Here, we will give some examples to let everyone see why companies need multiple signatures, and why they need a reasonable and secure multi-signature scheme.

The first example is of course the famous Bitfinex. In August 2016, 120,000 bitcoins were stolen from Bitfinex. Their problem is that they used the wrong multi-signature scheme. From this example, the large multi-signature storage is a cold wallet, and secondly it is a reasonable multi-signature scheme. This is the lesson that should cause all corporate and personal attention.

Example 2: In 2018, a company asked Bitpie to help analyze the coin-losing incident, more than 200 bitcoins were stolen. We helped analyze the company and after the final identification, the bitcoins returned. In this case, if a reasonable multi-signature scheme is adopted, a large amount of bitcoin is managed by many people, and everyone can skillfully use the cold wallet, and there is almost no such asset risk.

Here again, the first place in security is cold wallet, the second place in security is multi-sig. Therefore, the correct approach is to first make a cold wallet, such as open source, secure hardware wallet using BITHD(bithd.com), and then design a reasonable multi-signature scheme according to the company’s own situation. Remember that each multi-signature participant should be a cold wallet.

3. The advantages of BitHD Multi-Signature Technology

Bitpie Wallet is one of the FIRST teams in the world to propose the HDM (HD+Multisig) wallet model, and we are also the FIRST team to make a “Cold HDM” wallet (there is a hidden mode in the Bither wallet(bither.net) that can open this feature); Bitpie is the world’s FIRST wallet to try to use the multi-signature technology to provide users with “OTC Trading On-chain Custody” service on the Bitcoin blockchain; BITHD makes user experience very easy in multi-signature. This is very significant because it means that a non-technical person (such as an accountant, lawyer, etc.) can easily participate in the management of blockchain assets, which is largely beneficial to the popularity of “cold wallet + multi-signature” technology; BITHD is the world’s FIRST hardware wallet to support ETH and EOS multi-signature functions; BITHD will soon support USDT multi-signature function.

4. More technological introduction on Multisig：

1）What’s the similarities and differences among the multisig mechanisms of BTC, ETH, EOS and USDT?

2）How to use Multi-signature function on Bitpie Wallet — YouTube

3）A Few Key Points to Correctly Choose a Hardware Wallet

4）Why Screenless Hardware Wallet = Hot wallet?

Official Links：

BitHD Official Website：https://bithd.com/ BitHD Source Code：https://github.com/bithd BitHD Manual：http://docs.bithd.com/zh_CN/latest/

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