For us ordinary people: Is there any reason to use mult-sig (3xxx...) wallets?

[OROBTC]

...

I use Bitcoin reasonably often and like it a lot.  And like so many here, I have tried to think various things through as I learn.

I have been unable to think of any good reason why a single user would need or even want a 3xxxxx... wallet.  I can see a use if a 3xxxxx... wallet were to be accessed, say, by family members.  But would there be any other reasons why anyone would want a multi-sig wallet?

If so, is there a good service offering creation of them?

Thanks!

[BlindMayorBitcorn]

And who's using it now? And for what?

[OROBTC]

And who's using it now? And for what?

I believe that it is mostly institutions that are using the multi-sig wallets.  I know very little about them, but I believe they have the feature where, for example, TWO out of the three users "listed" must sign off on a transaction.  My *guess* is that having two or more sign a transaction would mean more accountability.  Apparently some of the mining pools use multi-sig wallets.

I would appreciate any other basic insights into these 3xxxxx... wallets from people who use them (as well, of course, as to any advantages for non-institutional users).

[AliceWonderMiscreations]

I won't use them because I want KISS.

However if I was going to make a paper wallet worth several hundred thousand dollars USD, I would probably make it multi-sig. That's so no single family would have access to it but if I accidentally tripped and fell off a cliff while photographing rattlesnakes (and they are beautiful), family could still access it.

But just because the technology exists doesn't necessitate its use for the masses, it just is good for those who do have a use for it.

[7788bitcoin]

For me, a multi-sig address will allow the fund in the address to be accessible when, for example one of the holders lost the key.

In this case, the fund can be transferred to a new address with new keys to be distributed to all holders again. More like a fail-safe approach.

[tobacco123]

And who's using it now? And for what?

I did generate one previously. Just one question: is there any software to help with vanity address for 3xxx keys?

[UngratefulTony]

A 75% fee discount on signature space when we wake up one morning to see that Seg Wit Soft Fork has been approved by 4 Chinese/1 Georgian dude, and 80% of the node network has entered part zombie status.

[Amph]

they also occupy more space on the block, so they are a part of the reason why there is the ned of an increase in the limit, minor part but existing

i've only seen this used in some exchange and some services for funds release it's good, when more than one party is in control of the money

[ObscureBean]

The only other reason I can think of is if you want to use the wallet for some type of escrow service where you need at least 2 private keys to access the funds. This would ensure that the transaction is more secure and that any dispute can be resolved effectively.

[AliceWonderMiscreations]

they also occupy more space on the block, so they are a part of the reason why there is the ned of an increase in the limit, minor part but existing

i've only seen this used in some exchange and some services for funds release it's good, when more than one party is in control of the money

They happen so rarely I doubt they have a significant impact on the block size issue.

I do think a bigger block will be needed soon, SegWit may help but I still think needed soon, but I think the block size debate is being blown way out of proportion.

We'll see what happens after SegWit.

[Kakmakr]

If you want someone to co-sign your transactions for some or other reason, you use multi-sig ... I on the other hand, do not want to make it too complex, because this adds various extra variables to the scenario, if you
go this route. Questions on availability of co-signers ect, and if something happens to them, will always be a issue. You will find that the advantage of doing it in this way and the added security it brings, might just not
out weigh the troubles you might have in future, if something goes wrong.

[twister]

If there is only single user then I don't see the need for using them but some people do it because it adds another layer of protection, like with Copay, you can have yourself as a co-signee on your phone. If you need one, you can use electrum.

[shorena]

If there is only single user then I don't see the need for using them but some people do it because it adds another layer of protection, like with Copay, you can have yourself as a co-signee on your phone. If you need one, you can use electrum.

Yes, you can essentially make your wallet 2fa without risk that the service provider can run with your coins.

the 1st set of keys is with your hot wallet
the 2nd set of keys is with the service (e.g. copay)
the 3rd set of keys is in your (offline) secure backup

Any 2 can sign. So if your hot wallet is compromised, the attacker would also need your phone (for one key from the 2nd set) or your secure backup (for one key from the 3rd set). If the service is no longer availalbe you can move the funds yourself with your hot wallet and your secure backup.

[honeyhtet]

For a single person not having huge balances... I think there is no real or practical reason unless it's a company or a group of people not wanting to trust each other... so I would consider this just interesting for regular people with no practical use.

[richmcrich]

I don't think so, As far as I know these are most appropriate for Services like middlemen/escrow, Wallets to ensure security of deposited funds and companies etc... I don't think it's useful in any specific way for a person unless it's to control a gambling addiction or some rather different situation.

[FlyingSaucer]

Using a multi-sig wallet may come in handy later on and being a single user is not a disadvantage of using such a wallet you just don't activate this feature.

[kn_b_y]

I think that we all will be using multisig eventually.

Multisig is needed for payment channels, which currently seems to be the hot idea for making bitcoin scale.

The basic idea is that instead of broadcasting every transaction to the blockchain, one party will partially sign a transaction from a 2 of 2 multisig output which the other party keeps as security (knowing that they can sign it and get the coins if needed). Subsequently many more new transactions can be signed by one of the parties and stored by the other, representing a kind of floating balance between the two parties without ever broadcasting to the blockchain. Eventually a transaction is broadcast - settling up and closing the channel.

There are more details…

See https://www.youtube.com/watch?v=8zVzw912wPo

[Iseecookies]

Is this service available currently or something you are thinking about working on,have not come across this idea yet reason I ask.
The escrow and maybe making purchases where you do not know or trust the other party.

[calkob]

I dont think so, why would the average user sue multisig.  i think it is prob something that we may all use further down the line once we see the benefit

[kn_b_y]

I think that we all will be using multisig eventually.

Multisig is needed for payment channels, which currently seems to be the hot idea for making bitcoin scale.

The basic idea is that instead of broadcasting every transaction to the blockchain, one party will partially sign a transaction from a 2 of 2 multisig output which the other party keeps as security (knowing that they can sign it and get the coins if needed). Subsequently many more new transactions can be signed by one of the parties and stored by the other, representing a kind of floating balance between the two parties without ever broadcasting to the blockchain. Eventually a transaction is broadcast - settling up and closing the channel.

There are more details…

See https://www.youtube.com/watch?v=8zVzw912wPo

Is this service available currently or something you are thinking about working on,have not come across this idea yet reason I ask.
The escrow and maybe making purchases where you do not know or trust the other party.

It's nothing to do with me. I'm new to bitcoin.

It's the lightning network (https://lightning.network/) proposed by Poon and Dryja.

Transaction malleability needs to be fixed for it to work properly - which segwit will do, if it happens.