What Is a Multisignature (Multisig) Scheme and How Does It Extend ECDSA?
A multisignature scheme requires multiple private keys to sign a transaction before it is considered valid, for example, 2-of-3 keys. This extends ECDSA by requiring a set of distinct, valid ECDSA signatures to authorize a single spend.
It is used for enhanced security, corporate treasury management, and escrow services. It mitigates the risk of a single point of failure by distributing control over the funds.
Glossar
Ecdsa
Signature ⎊ Within the context of cryptocurrency, options trading, and financial derivatives, Elliptic Curve Digital Signature Algorithm (ECDSA) provides a robust mechanism for verifying the authenticity of transactions and digital assets.
Private Keys
Ownership ⎊ Private Keys are the secret cryptographic credentials that mathematically prove ownership and grant exclusive control over associated cryptocurrency addresses and the assets they secure.
Multisignature Scheme
Cryptography ⎊ A Multisignature Scheme is a specialized cryptographic construction that permits multiple distinct private keys to authorize a single transaction, requiring a subset of these keys to collectively produce a valid signature.
Ecdsa Signatures
Mechanism ⎊ Ecdsa Signatures are a pair of numerical values, traditionally denoted as 'r' and 's', generated using the Elliptic Curve Digital Signature Algorithm to authenticate a message or transaction.
Multisignature
Architecture ⎊ Multisignature schemes represent a cryptographic protocol demanding multiple private key authorizations to validate a transaction, fundamentally altering single-signature control.