Feed for tag: multisig
Bustapay: a practical sender/receiver coinjoin protocol

One of the main features intended for Bitcoin in the future is a native support for multisig payments and coinjoins, they are currently supported by the Blockchain but not in a native way and as such they do not have as much efficiency and privacy as desired. This is going to be the main focus of the next major update in Bitcoin, changing the signature scheme to Schnorr Signatures.

As a simplified alternative to Pay-to-Endpoint (P2EP - Pay-to-Endpoint), developer Ryan Havar proposed a BIP for a new coinjoins protocol that does not need changes to the current Bitcoin consensus and provides a simple, practical way to make coinjoin transactions that are indistinguishable from normal ones.

PSBT (BIP 174) - Partially Signed Bitcoin Transactions

Multisig transactions 1 have been a great use case of Bitcoin for the past few years, they require unsigned or partially signed transactions to be passed between multiple parties to “co-sign” them. However, there is currently no unified format for how multiple parties may share these transactions between multiple signers, it depends on the particular implementation for each wallet making it hard to do among parties using different Bitcoin wallets.

A draft BIP (174), which was proposed last year by Andrew Chow, was recently a subject of interest among Bitcoin developers. It aims to create a standard extensible format that different clients can implement making Partially Signed Bitcoin Transactions (PSBT) easier to pass around users to sign and combine their signatures.