A Multi signature transaction is where N public keys are set with condition that at least M of those are required for a signature.
At the moment the Bitcoin protocol limits the number of M and N to 15. These are generally written as M-of-N transactions where N is the total number of keys and M are the number of signatures required to unlock the transaction and spend it.
These transactions are very useful for businesses where two are needed to sign off on a particular transaction or even as a joint account where the format between a couple would be set as 1-of-2 – or where either of the couple can use the funds.
If a 2-of-3 multisignature condition is set – then any two key signature combinations of the three keys can unlock the funds. The Locking and Unlocking scripts are shown below:
<ScriptPubKey>=2 <Public Key A> <Public Key B> <Public Key C> 3 OP_CHECKMULTISIG
<ScriptSig>= <Signature1><Signature2>or any permutation of Sig1,2,3
When this is executed the result, if the conditions is met, is equal to one and the transaction is verified and will be propagated throughout the Bitcoin network.
- Bitcoin Transactions - Pay-to-Public-Key?
- Bitcoin Transactions – Pay-to-Script-Hash?
- What is a Bitcoin block?
- What is a Bitcoin Fork?
- How does a hashing algorithm work?
- Bitcoin Transactions – Scriptsig and Scriptpubkey – locking and unlocking a transaction?
- How does the Bitcoin Network actually work?
- All Eyes on Blockster: The Social Network Empowering Crypto Sponsored
- Wault.Finance, the Platform Behind the World's First Commerce-Backed Stablecoin Sponsored
- Four Projects Bridging Crypto to the Real World Sponsored
- What is Staking?
- Is There a Legitimate Way to Earn Free Bitcoin?
- What Is Merged Mining?
- Bitcoin's Volatility and Other Concerns
- What Do You Need to Do to Become a Skilled Trader?
- What is GAUGECASH?
- Feel the Euro 2020 Winning Euphoria on 1xBit and Win Amazing Crypto Prizes
This website is only provided for your general information and is not intended to be relied upon by you in making any investment decisions. You should always combine multiple sources of information and analysis before making an investment and seek independent expert financial advice.
Where we list or describe different products and services, we try to give you the information you need to help you compare them and choose the right product or service for you. We may also have tips and more information to help you compare providers.
Some providers pay us for advertisements or promotions on our website or in emails we may send you. Any commercial agreement we have in place with a provider does not affect how we describe them or their products and services. Sponsored companies are clearly labelled.