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Cryptopia Blog

Multisig Wallet Built into Cryptopia: A Blockchain-Based Metaverse Game

Team Cryptopia
18.05.22 04:57 AM Comment(s)

What is a Multisig Wallet?

What is a multisig wallet? Well, before we really dive into what that is, you’ll need to be aware of one extremely crucial point of responsibility when it comes to cryptocurrency wallets—you are literally your own bank, and the responsibility of your funds lies completely in your hands. To be clear, there are no third-party establishments, such as banks, to take care of your funds for you. 

Now let’s first understand what a single-sig or single-key wallet is before we touch on multisig wallets. This type of wallet is faster and easier to use, but it comes with an enhanced level of risk – a single point of failure. This means that it only requires one key to validate transactions, so if anyone gets hold of your private key they’ll gain full access to your funds and can transfer the coins out of your wallet. Multisig wallets provide a solution to this security drawback.

A multisig (multi signature) wallet is essentially a smart contract that has 2 or more owners (signature addresses), and requires at least 2 signatures to verify the transaction on the blockchain before it is executed. This system adds an extra layer of security by increasing the number of failure points – so if one person’s keys were to be stolen, the funds are still safe. To simplify this concept, let’s say Andy, Bob and Carl co-own an apartment, but Carl usually lives with his parents. If Carl tries to go behind their back and sell the apartment, he won’t be able to because there aren’t enough signatures on the sale agreement; Andy or Bob would also need to sign the agreement in order to sell the apartment. 

In Cryptopia, your multisig wallet gets mined during the creation of your game account. In fact, your Cryptopia account is the multisig wallet! Cryptopia’s multisig wallet does more than just act as a digital wallet. Apart from storing the native cryptocurrencies – both fungible (ERC20) and non-fungible (ERC721), you can even use it to transfer, swap, buy and sell directly from your wallet. In order for this to be possible, the wallet needs to be safe, secure and recoverable; multisig wallet technology makes this possible. There are multiple advantages to this wallet technology.

Multisig wallets are MFA/2FA (Multi-Factor/Two-Factor Authentication). MFA/2FA is a method by which a user requires at least two keys to access funds. Most online platforms already utilize this model by requiring accounts to input a secret code sent to their smartphone after logging in. You can set a mobile and desktop wallet to sign transactions and once the transaction is confirmed from both devices, only then will the funds move. In Cryptopia, we implement 2FA as well, and you can be rest assured that your Crytopia assets are safe and secure.

Security is the primary advantage of a multisig wallet. If one of three registered devices is compromised in some way, or if it breaks/gets stolen, your funds are guaranteed to remain safe; you can still access your funds from the other two devices. Just by simply keeping your funds in a multisig wallet, you’re pretty much ensuring the security of your crypto. Security is precisely why multisig technology was developed. 

In conclusion, when using multisig wallets, make sure to remember that nobody except for yourself is responsible for your funds. multisig wallet technology is superior to single-sig wallet and it’s a credible alternative for managing crypto funds. The technology is still evolving and we can only see an increased usage in the future for multisig wallet technology.