The Bitcoin.com Wallet is a feature packed, non-custodial wallet application for Bitcoin Cash (BCH) and Bitcoin Core (BTC) cryptocurrencies. One of the most useful features of the app is that it supports something known as a ‘shared wallet’. Also known as a multi-signature (or multisig) wallet, a shared wallet is accessible by a two or more persons and requires at least one of these ‘cosigners’ to authorize the spending of BCH from the shared wallet.
Create a shared Bitcoin wallet by following these 5 steps:
- Download the Bitcoin.com Wallet app for iOS, Android, Windows, Linux, or Mac
- From the Home screen, tap the “+” in the Bitcoin Cash Wallets Menu to create a new wallet.
- From the “Add Wallet” menu, select “Create shared wallet”
- Set the ‘wallet name’, ‘your name’, ‘total number of copayers’ and the ‘required number of signatures’ needed to send BCH from the shared wallet. Note: ‘Total number of copayers’ is the number of people or devices that will have access to this wallet. ‘Required number of signers’ is how many of these people or devices will have to manually authorize a transaction before it can be sent.
- Create the wallet and then share the invite code with the other people who you want to join the wallet. This code can also be scanned or the block of text copied and pasted
Why use a shared wallet?
- Security: A single user with multiple devices can use a shared wallet to increase security of transaction capabilities. This way, even if your smartphone is stolen, the thief would be unable to spend from the shared wallet without authorization from the additional cosigners (i.e. one of your other devices).
- Accounting: A shared wallet gives all cosigners access to the transaction history of a single wallet.
- Third party escrow or mediation: For making a bet or buying something online.
- Voting on use of funds: An organization can be set up to only be able to send a payment after reaching a required threshold of authorizations.
To understand how shared wallets can work, consider this common use-case: Jasmine wants to setup a shared wallet at her company for payroll purposes. She wants 3 managers and herself to have access to the same wallet. This wallet sends salary payments to employees each month. She creates a new shared wallet, sets the name as “Payroll Wallet”. She then adds her name and sets the total number of copayers to 4 (herself and the 3 managers). Lastly, she sets the required number of signers to 3. This means any of the 4 cosigners can submit a payment request but the payment will not be completed until 3 of the 4 cosigners give their authorization within the app.
Multisig wallets are just like normal wallets—no exception: each cosigner within a shared wallet has a unique private key which grants them (partial) access to the wallet. It is very important to have all cosigners create backup their shared wallet(s)!
Warning: If you create a wallet where 3-of-3 cosigners are required, then if one cosigner loses his or her device (and doesn’t have the backup), or refuses to sign a transaction, then the funds within that wallet will be inaccessible to all participants! For this reason, it is not recommended to create shared wallets that require the signatures of all participants.
As you can see, multi-signature wallets are useful for a number of reasons. To create your own shared wallet download the Bitcoin.com Wallet app today!