New BIP32 structure for P2SH multisig wallets



Summary:

In an email conversation, Mike Hearn discussed the use of HD wallets for cosigners and why a separate branch is necessary for each cosigner. Hearn suggests using regular HD wallets and swapping watching keys to avoid generating the same address and receiving simultaneous payments. The issue with using one shared branch for everyone is that two cosigners could need a new receiving address at the same time and receive payments to the same address, which monitoring balances would not solve. By separating branches and having each cosigner use only one branch, this problem can be eliminated. The purpose of the cosigner_index is to prevent race conditions when receiving payments, as it's impossible to assume all cosigners are online at all times.


Updated on: 2023-06-08T21:40:34.520377+00:00