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Seed Phrases & Wallet Recovery
🤝 Requiring Multiple Signatures for Security
Learn how multi-sig wallets require 2-of-3 or 3-of-5 approvals to spend funds
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0 / 5 completed🔐 Multi-Signature Wallets
What if one person controlling a $100 million treasury got hacked? What if a key employee disappeared with the only private key? Multi-signature wallets solve these single points of failure.
💡 The Problem with Single-Signature Wallets
Traditional wallets use one private key = complete control. This creates massive risks:
🎯
Single Point of Failure
One compromised device = all funds stolen instantly
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Key Person Risk
Employee quits/dies with key = funds locked forever
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No Checks & Balances
No approval process = rogue employee drains treasury
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Trust Issues
Partners must trust one person with full control
🎮 Interactive: Single vs Multi-Signature
Compare how transaction approval works in different wallet types
Single-Signature Wallet
Transaction: Send $1M
Requires: 1 signature from owner
👤
Alice
Owner
→
✓
Approved
Transaction sent
⚠️ Risks:
- • Alice's device hacked = $1M stolen
- • Alice disappears = $1M locked forever
- • No approval process or oversight
- • Complete trust required in one person
📊 Common Multisig Schemes
2-of-3
Most Popular
3 key holders, any 2 must approve. Use case: Small teams, married couples, personal security
3-of-5
5 key holders, any 3 must approve. Use case: Corporate treasuries, DAOs, larger teams
5-of-9
9 key holders, any 5 must approve. Use case: High-security operations, major protocol upgrades
1-of-2
2 key holders, only 1 needed. Use case: Backup keys (NOT recommended for security)
💰 Real-World Impact
🏦
$50B+ Protected
Gnosis Safe (leading multisig platform) secures over $50 billion in crypto assets for DAOs, treasuries, and teams
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Enterprise Standard
Every major DeFi protocol (Uniswap, Aave, MakerDAO) uses multisig for treasury management and protocol upgrades
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BitGo Business
Institutions like Tesla and SpaceX use BitGo's 3-of-5 multisig for corporate Bitcoin holdings
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Bitcoin Core
Bitcoin development fund uses multisig controlled by trusted community members
🎯 What You'll Learn
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Technical Deep Dive
How threshold signatures work on Bitcoin and Ethereum
🏢
Real Applications
Corporate treasuries, DAOs, inheritance planning
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Setup Guide
Step-by-step: Creating your first multisig wallet
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Best Practices
Security considerations and common pitfalls