Multisig Set Ups For Individuals
Multisigs are useful for individuals looking to enhance their security stack by enabling secure storage of crypto with multiple sets of private keys instead of just one. Given the individual has the proper set up, multisigs are inherently more secure than normal wallets. Let's explore two options.
  1. 1.
    Multisig w/ Personally Owned Wallets/Devices as Signing Keys
When creating a multisig with Squads, you can designate your browser or hardware wallets as the keys that can open the vault. If you own multiple wallets/devices secured by separate private keys, (ie: Phantom, Solflare, Ledger), you can utilize these devices as the signing keys on the multisig. This way, if one of your wallets gets compromised, your crypto is still safe because your other wallets have not been compromised. If you are using a physical device that stores private keys such as a Ledger, you can also choose to store your devices in different physical locations to protect them from IRL robberies. This is an extra layer of security best for those who have crypto savings they plan on HODLing for an extended period of time.
2. Multisig w/ Signing Keys Spread Across Family Members/Friends
If you are looking to store a portion of your family savings in crypto, a multisig is a viable solution that solves for both security and co-ownership. By spreading the private keys necessary to transact across multiple family members, there is no question of one person in the family having unilateral power to move funds; all transactions must be approved by the minimum threshold of family members you set at the creation of your multisig. For example, if you create a 3/5 (three-out-of-five) multisig with your immediate family, three-out-of-five family members need to approve transactions for any funds to be transferred, diminishing the chance of a rogue bad actor. You can allocate physical devices such as a Ledger to different family members that stay in different locations to increase security. By spreading keys amongst different owners, the attack vector necessary for hackers to breach your family's vault multiplies with each key added, given the keys are all stored separately. Secure storage of private keys is an integral part of this operation.
Copy link