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Crypto exchange platforms adopt advanced solutions to ensure security and reliability for users. Most of these exchanges are leveraging multisig technology to reinforce the security of their wallets. In this article, we will comprehend the issues with traditional custody solutions and how multisig feature is revolutionizing this ecosystem.
What is a multi signature wallet?
Multi signature wallet is a digital wallet that requires more than one user to sign and validate the transactions. It functions just like a double lock system wherein different individuals hold private keys to maintain full security of the box.
Multisig wallets are not just limited to two signatures; it can go higher to any number depending on business needs.
Issues with traditional custody solutions
Traditional custody solutions lack transparency and do not provide full control to the owners of the funds. It has also been seen that huge sums of assets are lost from crypto exchanges. Even the most popular exchanges experienced hacks in recent years. Safe custody of crypto assets has become a major issue, and lately, self custody of keys emerged as a safe haven. So let us explore what are the various issues faced by the crypto holders.
Because of the above-mentioned issues, crypto exchanges are fortifying their platforms with multi signature bitcoin wallet.
Multisig wallet: A solution for redundancy and single point of failure
A huge number of cryptocurrency holders buy their crypto assets from an exchange and store them in a hardware wallet. This mechanism increases transparency, enhances control over their funds and even mitigates the risk inherited in a centralized custodian of crypto assets.
But on the other hand, a hardware wallet faces a single point of failure. You may lose your funds even if you have stored or kept a backup of your wallet. The most worrisome situation happens when the hacker may be your known person. In this case, he need not hack an exchange but simply need to steal your hardware device.
A solution to this problem is multisig storage. Multi-signature prevents single point of failure and losses. Multisig wallets are the best and safer due to the following reasons:
The security, privacy and autonomy of transactions enhance with multisig feature in a cryptocurrency wallet. For creating a secure you can integrate other advanced security features into the wallet, apart from multisig, such as biometric authentication, password-protected access, two-factor authentication, and more.
At Antier, we specialize in providing white label multi signature wallet fortified with market-leading features like mnemonics, biometric authentication, multi-currency support, QR code scanner, NFC support, self-explanatory interface, and more. Besides, we hold the expertise to build a custom wallet for scratch, as per your business needs.
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