Since the inception of cryptocurrencies, their safety has been a major talking point. It’s a well-known fact that crypto attracts a lot of bad actors. As a Bitcoin Cash trader or investor, you’ve likely had contact with scams and perhaps even fallen for one. Getting a Bitcoin Cash multisig wallet is a possible way to prevent that.
What Do Multisig Wallets Do?
Let’s tackle the difference between single and multi-signature wallets, although the names already imply them fairly strongly. When you start a transaction with a standard single digital signature wallet, it generates a single key and signature. That means one user can engage and verify a transaction.
The base functionality of a multi-signature wallet is fairly easy to understand. They require the approval of multiple parties to complete a transaction. Usually, that means the generation of multiple keys and signatures. That makes them a great solution for joint crypto accounts, but it also has security use cases.
How Does That Keep You Safe?
For example, you can act as multiple users and keep different wallet access points on different devices. So let’s say a hacker compromises your PC and attempts to start a crypto transaction. You can use your laptop and phone and turn the trade down, protecting you from getting your funds stolen.
Multisig Wallet Types
Multisig wallets can have different structures, and you can pick the one that suits you the most. For example, a 3-3 multisig wallet is one that has three parties participating in a transaction, with each one needing to verify it. That can create difficulties, as if a party is compromised, they can halt transactions while the attacker works on piercing the other two.
There are also structures that don’t require all parties to confirm a transaction. For example, you can set up your Bitcoin Cash multi-signature wallet to be 2-3. That means out of three signature holders, two would need to approve a transaction for it to go through.
Lastly, 1-2 multisig wallets are fairly popular for joint accounts, but they don’t actually provide more security. Actually, it’s arguable that they’re less safe since if either keyholder gets compromised, the hacker can engage a transaction alone.
As a rule of thumb, more parties make a transaction safer but slower and vice versa. It’s up to you to find your sweet spot.
Are There Any Downsides to a Bitcoin Cash Multisig Wallet?
No technology is perfect, and that includes multi-signature wallets. Inherently, the technology presents a few issues that come as a tradeoff for increased security. That has presented a major obstacle for multi-signature wallets and has prevented them from slipping into the mainstream. Modern wallets solve a lot of the issues below, but we’ll list some difficulties traditionally associated with multi-sig technology.
Speed
As multisig transactions generate multiple keys, they take a longer time. Also, compared with single signature transactions, the process of verification from multiple users takes longer. All that decreases the transaction speed, which can be detrimental for some users.
Price
Furthermore, the gas fees are usually higher on multisig wallets for the same reason. Pricing is a key wallet feature, so many users have held back on using multisig wallets for the simple fact that they’re more expensive. We’ll explain the fix later on.
Complexity
A major reason stopping multisig wallets from achieving widespread use is how difficult they are to set up traditionally. You used to have to program them yourselves or download unintuitive software to do so. As the average crypto user is more interested in earning potential than the tech details, that’s made it difficult for multisig to catch on.
That’s also tough on people who develop wallets. Since the base of users is so fringe, there’s little motivation to develop multisig technology, which has also stalled development. And another development problem is that different blockchains have different multisig technology behind them. That presents a major limitation for developers, but there’s an exception that we’ll mention soon.
Safety
The least significant weakness of a traditional multisig wallet is that it still has some privacy issues. Namely, since it employs on-chain cryptography, it exposes all the copayers. If someone is actively trying to orchestrate a cyberattack against you, that makes it easier to create multiple breach points.
Historically, scams using multisig technology have also appeared. For example, a user gets invited to an impossibly good trade if they transfer their funds to a multisig wallet where they’re in the minority. Then, the scammers transfer the funds elsewhere since they were likely running a 2-3 setup or something similar. Needless to say, it’s a fairly basic scam and occurred at a time when the average crypto user was less informed.
The Solution
As we said, multisig technology has advanced and moved past its issues in numerous ways. Modern multisig wallet providers have managed to create quicker wallets with lower fees that are easier to access. However, few have gone as far as WH Cypher.
Namely, WH Cypher makes major strides in fixing every issue traditional multisig wallets face. As such, it’s one of the first multi-signature wallets that could become a widespread tool. In the next part of our text, we’ll explain the advantages of keeping your Bitcoin Cash with WH Cypher.
Quicker
By blending TSS technology with more standard multisig measures, WH Cypher lets you transfer your crypto much quicker. It generates a private key for each party and calculates their common public key. That way, it vastly quickens the transaction process.
Cheaper
Another advantage of mixing TSS and multisig is that it makes WH Cypher more affordable. Combined with WhalesHeaven’s decision to make the wallet free, it makes it much more accessible. If you intend to use it for Bitcoin Cash, it cuts the fee in half.
Simpler
WH Cypher has an advantage that’s quite meaningful over other wallets. Namely, you can do the entire setup process in minutes just by downloading the wallet with a few clicks. It requires no prior knowledge. The entire trading process can be done by a crypto novice by following these steps:
- Download the wallet from whcypher.com
- Generate a wallet with your friends
- Put down your funds
- Provide approval with your co-payers
And that’s all. There’s no advanced setup or coding involved. Its simplicity is perhaps the most significant step WH Cypher has taken toward the average user. While most people could get over the other difficulties with standard multisig wallets, figuring the setup out was always a chore. We can’t overstate the importance of the fact that WH Cypher is completely free and ready in a few clicks.
Trader-Friendly
The WH Cypher multisig wallet supports numerous different cryptocurrencies. Even if you’re primarily a Bitcoin Cash enthusiast, it’s likely you’ll want to trade at some point. Unlike other multisig wallets, WH Cypher can do that in one simple transaction via an easy-to-understand interface.
Safer
WH Cypher also builds on the already sturdy security of multisig wallets. Namely, since it combines TSS with multisig technology, it manages to transfer the cryptography off the blockchain. In other words, it hides the participants of the transaction, so that it’s nearly impossible for hackers to find them. In turn, that makes breaching multiple copayers a difficult task, provided that they weren’t compromised beforehand.
Another extremely important note is that the platform itself doesn’t have access to your funds at any point. You alone are in charge of your transfers, which means there’s no chance of anyone taking your money.
What To Do if You’re a Victim of a Cyberattack?
Getting compromised with a traditional multisig wallet is a massive chore in part because setting them up takes effort. So you’d need to construct a whole new wallet and go through a tedious setup process. That’s pretty time-consuming, on top of being frustrating by nature, and gives hackers more time to act.
However, with WH Cypher, the entire process is much faster, as you can open a free new wallet in a few clicks. Combined with the fact that the wallet itself is much safer than competitors, it makes recovery a breeze.
Closing Thoughts
While multisig technology has evolved a lot since it was conceived, few providers have reached a usable level. They always lack in some regard, be it price, speed, or the inability to support multiple currencies. And while there are niche cases where they are a good fit for some users, they’re rare. As such, they’ve mostly been relegated to an obscure crypto tool for hardcore enthusiasts.
WH Cypher is the first multisig wallet that has all the qualities it needs for mass adoption. The simplicity, speed, and pricing all make it viable as an everyday crypto tool. The wallet is universally beneficial, regardless of its users’ knowledge level.
As crypto attracts more and more scammers, better security solutions are necessary. WH Cypher has the accessibility of a regular single digital signature wallet, while being much safer. As such, the WH Cypher Bitcoin Cash multisig wallet presents itself as an invaluable tool.