Multi-Signature - Enhanced Security for Your Wallet

Overview

Multi-signature (multi-sig) technology adds an extra layer of security to your TBC Wallet by requiring multiple approvals before any transaction can be executed. This feature is essential for protecting high-value assets and is ideal for both personal use and shared wallets.

What is Multi-Signature?

Multi-signature is a security feature that requires multiple private keys to authorize a transaction. Instead of a single key controlling your wallet, multi-sig wallets require a predetermined number of signatures (e.g., 2 out of 3, 3 out of 5) to approve any transaction.

How It Works

1. Setup: Configure your multi-sig wallet with multiple key holders
2. Transaction Request: When a transaction is initiated, it requires approval
3. Approval Process: Designated signers must approve the transaction
4. Execution: Once the required number of approvals is reached, the transaction executes

Security Benefits

Protection Against Single Point of Failure

• Key Loss: If one key is lost, your funds remain secure
• Theft Prevention: A single compromised key cannot drain your wallet
• Internal Threats: Reduces risk from malicious insiders

Enhanced Control

• Shared Wallets: Perfect for businesses or families managing shared funds
• Governance: Enables democratic decision-making for fund management
• Audit Trail: All approvals are recorded for transparency

Regulatory Compliance

• Corporate Use: Meets requirements for corporate treasury management
• Compliance: Helps meet regulatory requirements for fund custody
• Accountability: Clear approval chain for financial audits

Setup Guide

Prerequisites

Before setting up multi-signature, ensure you have:

• A TBC Wallet account
• Multiple trusted devices or key holders
• Understanding of the approval process

Step-by-Step Setup

1. Access Multi-Sig Settings: Navigate to Security settings in TBC Wallet
2. Choose Configuration: Select your multi-sig setup (e.g., 2-of-3, 3-of-5)
3. Add Key Holders: Add the addresses or devices that will hold signing keys
4. Configure Threshold: Set the minimum number of approvals required
5. Test Transaction: Perform a test transaction to verify setup
6. Activate: Enable multi-signature protection for your wallet

Configuration Options

2-of-3 Setup

• Requires 2 out of 3 signatures
• Ideal for personal use with backup keys
• Balance between security and convenience

3-of-5 Setup

• Requires 3 out of 5 signatures
• Best for organizations or shared wallets
• Higher security with more flexibility

Custom Configurations

• Configure any M-of-N setup
• Tailor to your specific security needs
• Flexible approval structures

Best Practices

Key Management

• Distribute Keys: Store keys in different secure locations
• Backup Keys: Maintain secure backups of all signing keys
• Key Rotation: Regularly rotate keys for enhanced security

Approval Workflow

• Clear Communication: Establish clear communication channels for approvals
• Response Time: Set expectations for approval response times
• Emergency Procedures: Define procedures for urgent transactions

Security Measures

• Hardware Wallets: Use hardware wallets for key storage when possible
• Multi-Device: Distribute keys across multiple devices
• Regular Audits: Periodically review and audit multi-sig configurations

Use Cases

Personal Security

• High-Value Wallets: Protect significant cryptocurrency holdings
• Backup Strategy: Create redundancy for key management
• Peace of Mind: Enhanced security for long-term holdings

Business Applications

• Corporate Treasury: Manage company cryptocurrency reserves
• Team Wallets: Shared wallets for development teams
• DAO Governance: Decentralized autonomous organization fund management

Family and Shared Accounts

• Family Funds: Manage family cryptocurrency assets
• Joint Accounts: Shared control for couples or partners
• Inheritance Planning: Multi-party control for estate planning

Supported Networks

TBC Wallet's multi-signature feature supports:

• TBChain: Native multi-sig support with optimized performance
• Bitcoin: Bitcoin multi-sig wallet support
• Ethereum: Ethereum-based multi-sig smart contracts
• TRON: TRON network multi-signature capabilities

Transaction Process

Initiating a Transaction

1. Create Transaction: Draft the transaction in TBC Wallet
2. Submit for Approval: Transaction is queued for multi-sig approval
3. Notification: All key holders receive notification
4. Approval: Key holders review and approve/reject
5. Execution: Transaction executes once threshold is met

Approval Interface

• Transaction Details: View complete transaction information
• Approve/Reject: Simple approval interface
• Comments: Add notes or comments to approvals
• History: Track all approval activities

Frequently Asked Questions

How many signatures do I need?

The number of required signatures depends on your configuration. Common setups are 2-of-3 or 3-of-5, but you can customize based on your needs.

What happens if I lose a key?

If you lose a key but still have enough keys to meet the threshold, you can continue operating normally. However, you should replace the lost key to maintain redundancy.

Can I change the multi-sig configuration?

Yes, you can modify your multi-sig configuration, but this typically requires approval from existing key holders to ensure security.

Is multi-sig slower than regular transactions?

Multi-sig transactions may take slightly longer as they require multiple approvals, but the enhanced security is worth the minimal delay.

Can I use multi-sig with hardware wallets?

Yes, TBC Wallet supports hardware wallet integration for multi-signature setups, providing even greater security.

Support

For assistance with multi-signature setup or questions, visit our Support Center or check our FAQ.