The other day, I didn't know how a government could securely hold Bitcoin, especially considering the risk of theft.
I now understand multi-signature agreements and how they secure a wallet. For example, you could generate three private keys, you know the first of them, entrust the second one to a custodial bank, and have your partner hold the third key.
In this setup, at least two parts are required to create a valid signature.
Multi-sig provides the security an entity or a country like El Salvador needs to hold Bitcoin.
Alekzar / Alezkar
npub1p3…jgxl9
2024-08-17 17:32:27
Author Public Key
npub1p3rfw7wscmzfn9z3fa74nzgyqe70p57j8mws0e88dh7awjepmzcq7jgxl9Published at
2024-08-17 17:32:27Event JSON
{
"id": "b0f78eb3bbde2064fb641cb594d0c74721df197d57013f6bdd5a520d0e8098f3",
"pubkey": "0c469779d0c6c49994514f7d598904067cf0d3d23edd07e4e76dfdd74b21d8b0",
"created_at": 1723915947,
"kind": 1,
"tags": [],
"content": "The other day, I didn't know how a government could securely hold Bitcoin, especially considering the risk of theft.\n\nI now understand multi-signature agreements and how they secure a wallet. For example, you could generate three private keys, you know the first of them, entrust the second one to a custodial bank, and have your partner hold the third key.\n\nIn this setup, at least two parts are required to create a valid signature.\n\nMulti-sig provides the security an entity or a country like El Salvador needs to hold Bitcoin.",
"sig": "9913f08c24680a0db53af1e51e44f6d492bd2fe29dbbfc32bb468767d3b060f2c2934208b39d6dd4e7fddf94d5ad3ea33302d19ece0fe4a29ee584012dab1a08"
}