Ethereum: How will multisig addresses work?

The Future of Ethereum Multisig Addresses: A Comprehensive Guide

The second largest cryptocurrency after Bitcoin, Ethereum has been a pioneer in developing advanced features for its users. One of the most exciting developments in recent years is the introduction of multisig addresses, which are revolutionizing the way you interact with smart contracts on the Ethereum network.

What are Multisig Addresses?

Simply put, a multisig address is an Ethereum address that allows multiple signatories to control access to certain funds or assets. This is achieved by using a multisig (multisig) wallet, which requires at least two separate addresses to authorize transactions.

How ​​will Multisig Addresses work?

Ethereum’s multisig feature allows users to create wallets that require multiple signatories to approve certain operations before they can be executed. This ensures that even if one or more of the signers are compromised, no transaction can be executed without their approval.

To understand how it works, let’s break down the process:

• Create Wallet: The user creates a multisig wallet by specifying multiple addresses (usually 2-5) that will serve as signers.

• Initiate Transaction: The wallet holder initiates a transaction on the Ethereum network using their multisig address.

• Signer Approval: All signers in the wallet must verify and approve the transaction before the network can confirm it.

• Confirmation: Once all signers have approved the transaction, the Ethereum network confirms it.

Will Multisig addresses consist of multiple traditional addresses?

One question you might ask is whether multisig addresses require a separate traditional address for each signer. The answer is no. In the current implementation of Ethereum, each signer can be a separate person, and their own traditional Ethereum address can still be used to authorize transactions.

This means that users can choose between:

• Ethereum-based multisig addresses: These are the new standard for Ethereum wallets that require multiple signers (typically 2-5) using traditional Ethereum addresses.

• Other wallet types: Users can also use other types of wallets, such as hardware wallets or software wallets that have multisig functionality built in.

Will it be possible to specify whether they require 2 out of 2 or 1 out of 3?

Another important consideration is how the user can control the number of signers required for a transaction. Currently, the Ethereum implementation does not provide this flexibility. However, future updates may include specifying the number of signatories required, such as:

• 2/2

  : This would require at least two signatories (and their associated traditional Ethereum addresses) to authorize a transaction.

• 3/4: This would also require at least three signatories and their associated traditional Ethereum addresses.

To enable these features, users will need to update their wallet software or use third-party tools that provide custom multisig configurations.

Conclusion

Ethereum’s multisig feature has the potential to revolutionize how smart contracts interact with the network. By providing a flexible and scalable solution for managing access to funds and assets, multisig addresses allow users to build more complex and secure decentralized applications (dApps). As the Ethereum ecosystem continues to evolve, it is likely that we will see further developments and improvements in this area.