What Wallet is Not a Multi-signature Wallet

What wallet is not a multi-signature wallet? What is a multi-signature wallet? Why use a multi-signature wallet?

In the case where wallet developers are unaware, it is necessary to control one’s assets through a private key. If there are multiple different accounts and passwords, users cannot manage their funds. This means that anyone can create new accounts, access other accounts, or change their accounts. These operations are usually considered secure, but there are also many risks. For example, malicious code or hacker attacks may occur when an account is associated with multiple accounts. If both parties to a transaction transfer the encryption privileges of their own addresses to another wallet for fraudulent purposes (e.g., assuming you have 4 out of 10 people’s wallets), their identity will be exposed on the network. Therefore, in most cases, a user’s mnemonic phrase may be lost and stolen, and for some exchanges, they can still choose to transfer your private key to other third parties.

The benefits of multi-signature are: wallet providers can ensure that transactions do not occur in error. However, if someone wants to use a multi-signature solution to protect user privacy, it will have a significant impact on all users. (Image Source: CoinGape)

Although many wallets currently support this feature, theoretically, these wallets still cannot fully meet the needs of users. This is because only one or two individual users can complete the wallet registration and authentication. Therefore, wallets should not rely on existing users alone to build new wallets, but rather depend on feedback from existing users to be successful. So the wallet is not a perfect choice. It can only solve some problems:

1. There are not enough wallets to store all the data and only allow a few simple participants.

2. There aren’t too many configurable data structures.

3. No additional computational power is required.