Multisignature

A single transaction of a bitcoin requires only one signature from the person holding the private key of the wallet sending the bitcoin. However, for a cryptocurrency to behave like currency in a trustless system more than one signature may be required for the transfer of currency in return for a good or service. In what is known as a 2-of-2, both parties must provide their signature to complete the transaction, assuming both parties are satisfied. Furthermore, to prevent one party from receiving the goods but not providing a signature, a 2-of-3 escrow can be added where a third party arbitrator can provide the second signature to process the payment or the return.


 

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