How to create a Multisig Wallet.
Has your crypto wallet been hacked? Do you have on-chain assets that need better security? Or are you a Web3 team looking to secure shared funds? If so, you should consider using a multisig wallet. This article will guide you through setting up a multisig wallet and performing transactions with it.
What Is A Multisig Wallet?
A multisig wallet, short for multi-signature wallet, is set up using multiple public keys (signatories) and requires more than one signatory to authorize a transaction.
Multisig helps to prevent theft and even if one public key/signatory is compromised, the funds remain secure.
How does a Multisig Wallet work?
A multisig wallet is set up with a certain number of participants, each with their private keys and corresponding public keys. The multisig requires a minimum number of signatures from private keys before a transaction can be approved. This means that when a transaction is initiated, it can only be completed if the required number of valid signatures is met.
How to set up a Multisig.
To get the most out of this guide, you should have a basic understanding of non-custodial wallets like MetaMask and how to use them. To set up your multisig, you need your computer and MetaMask or any non-custodial wallet you use.
/Then head to (https://app.safe.global/)](https://app.safe.global/).
- Verify and correct the link if necessary before connecting your wallet.
Connect your wallet. For the sake of this article, we'll be using Eth Sepolia Testnet (please apply discretion handling mainnet funds). Safe supports multisig creation on over 12 mainnet networks like Mainnet Eth, Arbitrum, Optimism, Polygon, and Base.
Name the safe whatever you like, and click on next.
Add wallets you'd like to include as signatories, set the required threshold then click next. In the image below, two new signatories were added, and the threshold was set to 2 of 3. The threshold is the number of signatories required to approve a transaction. You'll be required to pay a network fee/ gas to create your safe which varies across different networks.
You'll receive a notification that your multisig has been created, along with the public key assigned to it.
- We'll be funding the multisig now to test it.
The multisig has been funded, now let's perform some transactions on this multisig. Let’s send out some eth to say signatory 2 wallet address, click on new transaction
Input wallet address and amount to send, click next, and sign
Now, one of 2 signatories has signed. For this tutorial, we want the third signatory to sign the 2nd confirmation. Take note that either signatories 2 or 3 can approve the transaction since the required threshold is 2 of 3.
You'll notice that signatory 3 on signing into the multisig, is notified of a transaction that needs confirmation.
- You have the choice to execute the transaction immediately or later. Click on execute and sign the transaction in your wallet.
Your transaction is being processed and you can click on finish.
And that's all! In this article, we have created a multisig, explored how to add signatories, and carried out a transaction on the multisig wallet.
In conclusion, multisig wallets offer a robust solution for enhancing the security of your on-chain assets. By requiring multiple signatures to authorize transactions, they provide an additional layer of protection against unauthorized access. Whether you are an individual looking to secure your funds or a Web3 team managing shared assets, setting up a multisig wallet is a prudent step toward safeguarding your digital wealth.