How can I create a multi signature 2-of-3 transaction?

Question

Can somebody help me with step-by-step list of how to create a multi signature 2-of-3 transaction?

Answer 1

Actually, both receiving funds at and spending funds from a multi-sig address is already supported.

You can find the code to do so, plus comments, by Gavin:

TwoOfThree.sh

Answer 2

It seems some partial implementation exists. Quoting Gavin:

Generate a multisig address:

1. Gather (or generate) 3 bitcoin addresses, on whichever machines will be participating, using getnewaddress or getaccountaddress RPC commands (or copy and paste from the GUI).

2. Get their public keys using the validateaddress RPC command 3 times.

3. Then create a 2-of-3 multisig address using addmultisigaddress; e.g.

   bitcoind addmultisigaddress 2 '["044322868cb17d64dcc22185ae2d4493111d73244c3668f8ac79ecc79c0ba8d30a6756d0fa20157 709af3281cc721c7f53321a8cabda29b77900b7e4fe0174b114","..second pubkey..","..third pubkey.."]'

addmultisigaddress returns the multisignature address. Be a little careful, the public keys are raw hexadecimal and don't contain checksums like bitcoin addresses do. You can then send funds into that 2-of-3 transaction using the normal sendtoaddress/sendmany RPC commands, or the GUI (or anything that's been updated to recognize multisig addresses).

Spend from a multisig address:

This isn't implemented yet (RPC calls mechanism). You could gather up all addresses into one wallet, and then you would be able to spend the funds.

Update March 2014

Multisig is still hard. I believe the SX library is an easy tool (by people like Vitalik Buterin and Amir Taaki) for working with multisig, but I haven't tested that myself.

Answer 3

A m-of-n multisig address is created as follows:

1. Gather all n public keys.
   e.g. 3-of-3
03730a151f545f5dcdb1c6d99fb1251f5c70f216f39ba2681bcf10db16bd582e67, 03a9bb9d28dfcd2e58ca7b3fa39f4051a6496fc7928f993f1758aeff7c0fee0f03, 03a34b99f22c790c4e36b2b3c2c35a36db06226e41c692fc82b8b56ac1c540c5bd
2. Create the multisig script
   OP_m <bytes-in-Pubkey1> <pubKey1> ... OP_n OP_CHECKMULTISIG
   e.g. 532103730a151f545f5dcdb1c6d99fb1251f5c70f216f39ba2681bcf10db16bd582e672103a9bb9d28dfcd2e58ca7b3fa39f4051a6496fc7928f993f1758aeff7c0fee0f032103a34b99f22c790c4e36b2b3c2c35a36db06226e41c692fc82b8b56ac1c540c5bd53ae
3. Hash the script HASH160(<script>)
   e.g.
   8b58c2f47cd3000e42c82138f7678dc978bc109a
4. Append 0x05 for P2SH address on mainnet: 05<scriptHash>
   e.g.
   058b58c2f47cd3000e42c82138f7678dc978bc109a
5. Apply Base58Check: BASE58CHECK(05<scriptHash>)
   e.g.
   3EPpBU7fXq1PfG6JkLnJNUUmEGcSr9rdmh

You can send bitcoin to this address, but to spend from it, you must provide the scriptSig: 0 <sigM> ... <script> where <sigM> is signed from each of the m private keys.

See Bitcoin Wiki - Script for opcodes, Bitcoin Wiki - Address Prefixes, and Bitcoin Wiki - Transaction for multisig P2SH script format.

Answer 4

The easiest way to create a multi signature 2-of-3 transaction is with Coinb.in.

1. If necessary, create 3 key pairs using the "New Address" drop down command.

2. Use the "New Multisig Address" together with the 3 public keys to create a 2-of-3 address.

3. Fund the address with bitcoin.

4. Create a new transaction by pasting in the "redeem script" from step 3, defining the receiving addresses and amounts. (All unspent inputs not assigned to a receiving address will be used as transaction fees. If change is desired include that in a new output address by clicking the "+".)

5. Sign the transaction by one of the private keys, then sign that transaction with another of the private keys.

6. Broadcast the transaction to the network.