Set Up Multi-sig Account

What is a Multi-sig account?

Multi-sig (multi-signature) is a term for an account that requires multiple private keys to authorize a transaction, rather than a single signature from one private key.

When applied to key management in crypto, a multi-sig account refers to an account that requires M-of-N signatures to execute transactions, where M is the minimum number of required signatures and N is the total number of authorized signers.

Multi-sig accounts are considered a highly secure key management method as they distribute trust among multiple parties, eliminating single points of failure and providing enhanced security against key compromise or unauthorized transactions.

How does multi-sig signing work?

Signing a transaction from your multi-sig account and broadcasting it to the blockchain involves a 3-step process.

1. The multisig account creates a transaction proposal using Adena.

2. Collect the required signatures from other authorized signers by sharing the unsigned transaction file.

3. Broadcast the fully-signed transaction to the blockchain once the minimum signature threshold (M-of-N) is met by uploading the file to Adena.

How do I create a multi-sig account?

1. Gather all participants who will be authorized signers for the multi-sig account.

2. Collect addresses from all participants (e.g., "g1...address1", "g1...address2") who will be part of the multi-sig account.

3. Determine the threshold - the minimum number of signatures required to execute transactions (e.g., 1, 2).

4. Create a multi-sig account in Adena by specifying the signers' addresses and the threshold.

The configuration information, including the list of signers and threshold settings, is stored as metadata of the account when the multi-sig account is created

How do I sign transactions with a multi-sig account?

1. Create an unsigned transaction proposal from the multisig account using Adena.

2. Share the unsigned transaction file with the authorized signer accounts to collect the required signatures.

3. Each signer signs the transaction using their own private key, and the signatures are added to the transaction file.

4. Once the minimum signature threshold (M-of-N) is met, upload the fully signed transaction file to Adena to broadcast the transaction to the blockchain.