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What is Multisig?

Updated 2 weeks ago

Multisig is the abbreviation for Multisigniture and was created to be a different option to single-­key addresses, multisig then refers to requiring more than one party to authorize a transaction through multiple keys in a crypto transaction, which avoids:

  • Single-point failures, making it difficult to be accessed by a third-party.
  • Losing your wallet, thanks to an M-of-N backup. 
  • Single access control, this means you are required at least two participants to agree in the transactions to release the funds.

How does multisig work in WhalesHeaven?

In WhalesHeaven we operate in a 2-­of-­2 multi­sig wallet, so when you participate in an auction the deal process is based on multi-signature wallets between the seller, the buyer, and our platform. This is to provide an extra layer of safety to ensure that all the funds you send in an exchange are protected and could only be released once you have given the approval to release them from your wallet.

Having a multisig process allows us to have full control over the deal process, preventing any unauthorized access to the user’s funds.

The process in WhalesHeaven is: once you top up your funds, they will be transferred into a multi-signature wallet that each, the buyer and the seller, have to provide their transaction approval on, once all approvals are in place, the platform signs both transactions, and the Tokens are traded wallet-to-wallet.

Why multisigs and not atomic swaps?

Multisig wallets have been known for years, but they had an unreasonable lack of attention from the industry. It is a highly secure mechanism for collaborative control of funds.

Multisig wallets are much more agile in terms of shaping the deal and they are much easier to understand and verify for non-tech people. Despite atomic swaps being highly secure as well, they can’t be used to organize one too many trading scenarios and some other trading cases.

Learn more about:

Where do I find my multisig participant key & wallet address for: Guarda, MetaMask, and MyEtherWallet.
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