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Looking to talk to a Casa expert? We're here to help.
Looking to talk to a Casa expert? We're here to help.
Security is of utmost importance in the realm of bitcoin. A multisignature (multisig) wallet is a self-custody solution that has gained considerable adoption and has been battle-tested against a myriad of threats, such as accidents, hacks, and burglaries.
While bitcoin is generally decentralized, protecting it requires some more forethought than traditional funds. Multisig wallets give you the security you need to hold assets with peace of mind.
The term “multisig” is short for "multisignature."
Multisig wallet refers to having multiple private keys for a single bitcoin wallet. Each key produces a signature, and more than one signature is needed to send a transaction.
Since multiple devices are needed to sign transactions with multisig wallets, they provide you with greater redundancy and resilience against single points of failure. As a result, multisig wallets are considered best-in-class for self-custody.
Most traditional wallets are considered single-signature, so they only need verification from a single source to send a transaction. Conversely, multisig wallets require multiple forms of verification before a transaction can be completed.
Not only do multisig wallets protect your funds if you lose a key, but they also keep your assets protected if an attacker manages to compromise one of your keys through a hack or theft.
Casa vaults offer enhanced protection over standard wallets that only use a single key. Here are a few primary ways our vaults can help:
Self-custody
When you use a Casa vault, you get full control of your keys instead of trusting a risky exchange or a custodian. Self-custody is particularly appealing to bitcoin investors who want total control over their funds.
Cold storage
With Casa vaults, your keys are held in cold storage with the exception of the mobile key. This is important because cold storage keeps your keys offline and unable to broadcast transactions until you are ready to do so.
Device diversity
It’s no secret that hackers are constantly trying to figure out how to exploit wallets and hardware devices. Casa vaults provide you with the opportunity to leverage different kinds of devices, making it far harder to access your funds.
Flexible key replacement
With traditional bitcoin wallets, a lost key can result in lost funds. However, with a Casa vault, you can easily replace a compromised key when needed and retain full control over your assets.
Secure maintenance
An extremely unfortunate occurrence in the world of crypto is when hardware wallet manufacturers release firmware updates that accidentally wipe your device clean, essentially erasing your key. Casa vaults prevent device failures that might otherwise wipe out your assets.
Decentralization
Casa vaults allow you to spread your keys across multiple locations, so your assets are not at the mercy of a single key. This distribution is useful for self-custody and collaborative custody, where you hold your keys with one or more parties.
With Casa, you can hold your own keys and take self-custody of your bitcoin. Have peace of mind your assets are safe.
Casa vaults are multisig wallets that provide you with robust and reliable security against a litany of threats. Each vault enables you to secure your bitcoin with multiple keys in both physical and digital settings, including mobile keys, hardware keys, and a Casa Recovery Key.
The Casa mobile app is your portal for managing your vault. In the 3-key vault, three keys protect your funds, but you only need two to send them. In the 5-key vault, five keys protect your funds, but you only need three to send them. In any case, a lost key doesn't translate into lost funds, since you still have other keys as a failsafe.
Learn more about why Casa is different here.
The Casa Recovery Key is designed as an additional level of security for your bitcoin. Importantly, the Casa Recovery Key is one of the keys in your vault that is able to sign and send transactions in the Casa app. The key itself is held by Casa, but cannot be used to send funds on its own. Rather, the Casa Recovery Key exists just in case you lose access to one of your other keys.
Bitcoin treasuries for businesses
Multisig wallets are particularly helpful for businesses and organizations that require multiple individuals to manage large funds and want to ensure continuity. They provide an efficient mechanism for implementing internal controls and managing financial processes by requiring the involvement of multiple authorized parties with collaborative custody.
Personal holdings
While the decentralized nature of cryptocurrency makes it appealing to many people, the very nature of crypto means you are responsible for protecting your own funds. Multisig vaults help you protect your investment while dispersing much of the security risk.
Multisig wallets can be used to enhance security for large organizations or individuals who trade in digital assets, such as stablecoins and ether.
