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Secure crypto vaults with multiple keysGet A CASA VAULT
Security is of utmost importance in the realm of cryptocurrencies. With the rising popularity of digital assets, individuals and organizations must review strategies for protecting their funds. A multisignature (multisig) wallet is a cybersecurity solution that has gained considerable adoption in the crypto space.
While digital assets are generally decentralized, protecting them requires some more forethought than traditional funds. New technologies like multisig wallets, however, give you the added security needed to trade in cryptocurrencies like ethereum with better peace of mind.
The term “multisig” is short for "multisignature."
Multisig wallet refers to having multiple private keys for a single crypto wallet.
Since multiple devices are needed to sign transactions with multisig wallets, they provide you with greater redundancy and resilience in the face of security threats. In today’s crypto world, multisig wallets are considered best-in-class for digital asset custody.
Most traditional crypto 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 crypto transaction can be completed.
Not only do multisig wallets protect your funds if you lose a key, but they also keep your digital assets protected if an attacker manages to compromise one of your keys through a hack or theft.
Casa crypto vaults offer enhanced protection over standard wallets that only use a single key. A few primary ways that Casa vaults are beneficial include:
When you use a Casa vault, you get full control of your keys instead of trusting a risky exchange or custodian. Self-custody is particularly appealing to crypto investors who want total control over their funds.
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.
It’s no secret that hackers are constantly trying to figure out how to exploit wallets and hardware devices. Casa crypto 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 crypto wallets, a lost key also results in lost funds. However, with a Casa vault, you can easily replace a compromised key when needed and retain full control over your digital assets.
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 crypto key. Casa vaults prevent device failures that might otherwise wipe out your assets.
Casa crypto vaults allow you to spread your keys across multiple locations, so your digital 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.
Casa crypto vaults are multisig wallets that provide you with robust and reliable security against a litany of threats. A Casa vault enables you to secure your digital assets 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 digital assets. 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.
Business use cases
Multisig wallets are particularly relevant for businesses and organizations that require multiple individuals to manage large funds. 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 use cases
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.