{"id":1501,"date":"2020-01-27T11:02:22","date_gmt":"2020-01-27T19:02:22","guid":{"rendered":"https:\/\/www.opennode.com\/blog\/?page_id=1501"},"modified":"2020-01-27T11:02:22","modified_gmt":"2020-01-27T19:02:22","slug":"multi-sig","status":"publish","type":"page","link":"https:\/\/blog.opennode.com\/blog\/glossary\/multi-sig\/","title":{"rendered":"Multi-Signature Address"},"content":{"rendered":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>\n

Multi-Signature Address<\/h1>\n\n\n\n

A multi-signature (multi-sig) address is a Bitcoin address<\/a> that requires two or more private keys<\/a> to authorize Bitcoin transactions. The general purpose of using multi-sig addresses is to increase security.<\/p>\n\n\n\n

Multi-signature addresses can have various arrangements depending on the desired level of security. The general formula M-of-N describes how secure a wallet is, where M is the number of keys required to create a transaction and N is the total number of keys associated with the wallet.<\/p>\n\n\n\n

For example, if a husband and wife want to have a joint Bitcoin wallet that can only be spent by themselves, they need a wallet where N = 2. If they want to be able to spend from the wallet without the other\u2019s permission, then M =1. If they want to have it so both parties must be present to spend from the wallet, then M = 2.<\/p>\n\n\n\n

Smart contracts<\/a> are a type of multi-signature wallet type 2 of 2 that are required to make the\u00a0bidirectional payment channels<\/a> required for the Lightning Network<\/a>.<\/p>\n\n\n\n

Links<\/h2>\n\n\n\n