Author: Alan Reiner 2014-09-23 16:16:57
Published on: 2014-09-23T16:16:57+00:00
The proposal put forth is for a BIP (Bitcoin Improvement Proposal) related to multisig wallets based on BIP32. The proposal suggests that for an M-of-N multisig wallet, there should be N internal chains and N external chains. Each party is assigned a chain based on the lexicographic ordering of their wallet's root public key in the multisig, which guarantees that no parties are generating and distributing the same addresses. This also provides a certain level of built-in book-keeping. The proposal further suggests coins being received on chain 2*x were created by participant x (receiving), and coins received on 2*x+1 are change outputs created by participant x (outgoing). Thus, it's easy from simply looking at the wallet structure who was responsible for which transactions.An alternative suggestion given is that each "device" could be assigned a pair of chains, for example, for a 2-of-3 there may be three participants plus a CFO with a "watch-only" version of the multisig wallet. In this scenario, four pairs of chains might be used, but it's not clear how they would be assigned. The document linked in the proposal contains pictures to visually describe the concept and can be viewed here: https://s3.amazonaws.com/bitcoinarmory-media/MultisigWalletNoCollide.pdf. If this proposal has been proposed before, the author considers it their contribution to documentation. Lastly, the author mentions that "No-Collision Mode" is not a great name and is open to suggestions for changing it.
Updated on: 2023-06-09T02:39:07.333029+00:00