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Electrum Wallet
Electrum Wallet – An O.G. Bitcoin Wallet With Multisignature Functionality
Electrum, a top-tier Bitcoin wallet, is celebrated for its robust attributes including state-of-the-art characteristics and stringent security measures. Unlike other players in the digital currency sphere, Electrum’s lightning-quick transactions and zero downtime are facilitated by servers that meticulously index the Bitcoin blockchain.
A standout feature that sets Electrum apart is its support for multisig wallets. This type of wallet, requiring multiple private keys (?) to gain access to funds, promotes cooperative financial control among multiple users or adds an extra layer of security for individual users. This feature is often highlighted by users appreciative of its added security benefits.
The decentralised nature of Electrum further enhances its appeal, with no central authority governing the network’s operations. This in turn, bolsters trust and reliability among its users. For user interface diversification: Electrum shines with its multi-platform accessibility. It caters to various user preferences, offering mobile, desktop, and command line interfaces. Ensuring a user-friendly experience for all.
Which Signing Devices Does Electrum Wallet Support?
Electrum Wallet is a robust platform that significantly enhances the security of Bitcoin transactions by offering comprehensive support for diverse signature devices. This powerful feature allows you to safely store your private keys offline on a hardware wallet, all while transacting with ease via Electrum’s intuitive user interface. Even in an event where your computer security is compromised, the integrity of your keys remains protected. This is made possible as each transaction requires physical approval on the hardware device – an added layer of security unique to Electrum Wallet.
Furthermore, Electrum Wallet offers compatibility with an impressive range of hardware wallets, broadening its reach and usability for different user preferences. To summarize, Electrum Wallet seamlessly blends security, usability, and versatility in its operations, emerging as a go-to choice for Bitcoin transactions.
- Coldcard MK4
- Coldcard Q1
- Passport
- Blockstream Jade
- Trezor Model T
- Trezor One
- Ledger Nano X
- Ledger Nano S
- Keystone 3 Pro
- Keystone 3
Features Of Electrum Wallet
Electrum comes with a host of features designed to make your transactions swift, secure and convenient. It has an ‘Instant On and Fast’ feature, making use of servers that have indexed the Bitcoin blockchain, which results in remarkably quick. Freedom is at your fingertips with the ‘No Lock-In’ feature, allowing the export of private keys (?) for use with other Bitcoin clients. The wallet is also designed to be always accessible, thanks to its decentralized and redundant servers.
The Electrum Wallet uses Simplified Payment Verification (SPV) to verify every transaction in your history, ensuring complete transparency. For heightened security, you can use the ‘Cold Storage (?)‘ option to keep your private keys offline and go online with a ‘watching-only’ wallet. The wallet also supports ‘Multisig’, permitting the division of spending permissions across multiple wallets.
Additionally, Electrum is compatible with third-party plugins, including multisig services and hardware wallets. The wallet provides an added layer of security with its ‘Two Factor Authentication’, which necessitates two forms of verification. True to the spirit of Bitcoin, the Electrum Wallet is free and decentralized, conforming to the MIT License that allows anyone to run an Electrum server without any controlling entity.
General Features
| ELECTRUM WALLET | |
|---|---|
| USABILITY |  |
| TRUST |  |
| SECURITY |  |
| PRIVACY |  |
| OPEN SOURCE | Fully Open Source (FOSS) |
| BITCOIN ONLY | YES |
| CONSENSUS SOURCE | Public Server, Private Server |
| TOR SUPPORT | YES |
| SELECT UTXO’s | YES |
| FREEZE / UNFREEZE UTXO’s | YES |
| PAYJOIN | NO |
| MIXING COINS | NO |
| PAYNYMS SUPPORT | NO |
| BATCH TRANSACTIONS | YES |
| SET FEES | YES |
Multisig Features
| ELECTRUM WALLET | |
|---|---|
| COMPATIBILITY | |
| AIR-GAPPED SIGNING | YES |
| PSBT | YES |
Multisignature With Electrum Wallet
Electrum, a widely used Bitcoin wallet, supports multisig functionality in a comprehensive manner. The functionality allows you to configure your Electrum wallet with multisig capability. This feature necessitates multiple sign-offs on a transaction, ensuring reinforced security. In a multisig setup with Electrum, every participant possesses a unique seed and also retains the Master Public Keys (MPKs) of the other participants. This structure ensures every participant can both verify and sign off on transactions.
Setting up a multisig wallet can be done asynchronously, adding convenience if there are different parties involved. The process includes generating your own seed and MPK, sharing your MPK with the other participants while collecting their MPKs and eventually creating the wallet itself. To sum it up: Multisig wallets, particularly when implemented via Electrum, offer an additional tier of security and adaptability for handling Bitcoin transactions. These specialised wallets are a valuable asset for those seeking to increase the security of their digital currency investments.
How To Setup A Multisig Wallet With Electrum?
Creating a multisignature wallet with Electrum involves a series of steps that prioritise secure and clear communication between all co-signers. Begin by establishing a new wallet file and selecting ‘multisignature’ as your preferred wallet type. You’ll be prompted to choose the number of co-signers and determine how many must sign off on spending transactions. Keep in mind, these details should be carefully noted down for future reference. Next, Electrum will generate a new seed for you. It’s essential that you write this down in a secure place, such as a piece of paper. This seed is confidential and should not be shared with anyone. To ensure that you’ve accurately recorded your seed, the wallet will ask you to re-enter it.
Following this, your Master Public Key (MPK) will be revealed. This can be shared with your co-signers, but remember to keep your seed private. The sequence of creating a multisig wallet essentially consists of three parts: Generating your seed and your MPK, sharing your MPK with your co-signers and receiving theirs, and finally, constructing the final wallet and verifying that the addresses match those provided by your co-signers. It’s important that each co-signer records their own seed and collaborates in restoring the wallet. Also, remember that everyone must use Electrum as their wallets will contain their unique auto-generated seed and the other co-signers’ MPKs. A quick way to verify that all co-signers followed the same process is by checking whether their MPKs start with the same letter.
After you’ve successfully shared your MPK with your co-signers and received theirs in return, you can safely close Electrum. Note that the creation of your multisig wallet is not yet complete. You still need to gather all other co-signers’ MPKs to finalise the process.
