Decentralized multi-signature solutions for Bitcoin.

transcript

Decentralized multi-signature

solutions for

Bitcoin

www.bitalo.comPhone: +49 6322 9419292 | e-mail: martin@bitalo.com

Bitcoin?Bitcoin?

- decentralized, peer to peer....

- no banks or 3rd parties needed

- secure system / everything with encryption

- somehow anonymous...

--> SO WHAT?

Status Quo - IntermediaryStatus Quo - Intermediary

Problem solved? – BitcoinsProblem solved? – Bitcoins

- Centralized Service??

- Give up control over my coins??

- Security issues with hackers?

- Sites close over night???

--> SAME PROBLEM AS BEFORE!

Centralized servicesCentralized services

Money goes via a CENTRAL bank

account

Bitcoins go via central server

What if a service exists where you….Get BitcoinsGet Bitcoins

- DO NOT give up control over your coins

- DO NOT allow even the administrators toaccess your coins

- IS NOT possible that Hackers can stealcoins, even when the server is compromised

-DO NOT need to trust the trading party, as still an escrow is in place? EVEN when the site is closed?

Decentralized servicesDecentralized services

Trick: Multi-Signature walletsTrick: Multi-Signature wallets

“Normal” Transaction“Normal” TransactionHow does it work?

Part 1: Create multi-signature addressMulti-SignatureMulti-Signature

-Get two or more Bitcoin addressees.

-Combine them using addmultisigaddress JSON-RPC command

-As a result, you will get a special Bitcoin address starting with „3”.

-The resulting Bitcoin address is fully functional and can receive coins.

-You can create different combinations of M-of-N addresses. It means that you can specify how many private keys are needed to spend the coins.

Part 2: Spending coins from multi-signature walletsMulti-SignatureMulti-Signature

-Create a transaction draft using createrawtransaction JSON-RPC command

-Sign the resulting transaction data with one of private keys, utilizing signrawtransaction command

-provide it with correct details, which may include: public key and redeem script

-Pass partially signed transaction data to other party, which repeats this process -Finally, you broadcast the transaction to the network (using sendrawtransaction or another means)

Multi signature walletsMulti signature wallets

Hackers and admins see encrypted wallets

Two-Factor authenticationTwo-Factor authentication

And the last resort: Dead Man’s SwitchAnd the last resort: Dead Man’s Switch

Bottom lineBottom line- It IS possible to create REAL NO TRUST Bitcoin services

- Multi-Signature wallets, no one can ever access the bitcoins without your consent

- Thanks to MePIN two factor authentication not even if your PC is compromised

-With timed backup-transaction coins are even safe when service is closed down or server data is deleted

YOUFOR watching

Decentralized multi-signature solutions for Bitcoin.

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