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When an attacker has access to the private key of the wallet, he can dump the private keys of every address used for the multisign address(es).

So, what's the point of multi sign addresses when there's a single point of compromising the security of the Bitcoins?

Why don't we have a multi signature wallet? A wallet that requires multiple private keys to be opened.

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When an attacker has access to the private key of the wallet, he can dump the private keys of every address used for the multisign address(es).

In the case of multisig addresses, there are multiple participating wallets, and multiple need to sign.

So, what's the point of multi sign addresses when there's a single point of compromising the security of the Bitcoins?

Compromising a single wallet is exactly what multisig protects against.

Why don't we have a multi signature wallet? A wallet that requires multiple private keys to be opened.

There are several. Some are commercial services, where one of the participants is the service operator (who then e.g. requires 2FA for signing). Others are advanced software that needs configuration to use.

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  • Got it now, but then, why would we generate all multisign addresses inside the same wallet? Wouldn't we have to generate every address in a separate wallet for every address?
    – Otijun
    Commented Nov 10, 2023 at 22:51
  • Each address will require signing with a list of public keys, one from each wallet. Typical schemes for address generation permit wallets to share their (master) public key, so that co-signers (and others) can derive multiple public keys at once. This means no communication with the wallets is needed for each new address. Commented Nov 10, 2023 at 22:52
  • "one from each wallet", which wallets? Bitcoin documentation does not specify that there are multiple wallets in the multisig process, rather, it suggests generating the addresses in the same wallet.
    – Otijun
    Commented Nov 10, 2023 at 22:59
  • If we want a real Multisignature setup, with let's say 5 nodes, It looks to me, and please correct me if I am wrong, that we would have to run the command: bitcoin-cli importaddress "multisig_address_generated_in_node_1" "" false inside nodes 2,3,4,5. Only this way we can achieve a real multisignature wallet, multisignature address having all of them a different private key
    – Otijun
    Commented Nov 10, 2023 at 23:03
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    You didn't mention Bitcoin Core before, I was just answering your question as posted. Bitcoin Core does have documentation for multisig setups (github.com/bitcoin/bitcoin/blob/master/doc/multisig-tutorial.md), but if you have further questions on that, please open a new question. Here you just asked why multisig setups are secure in general. Commented Nov 10, 2023 at 23:12

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