Bitcoin multisig wallets can enable more secure custody of your bitcoin, adding redundancy and avoiding a single point of failure in the number of keys necessary to authorize a spend. One new tool for utilizing multisig is Caravan from Unchained Capital.
With Caravan, Unchained Capital has created a free and open-source tool allowing you to spin up multisig wallets and addresses and spend from them. In the video above, Bitcoin Magazine’s Christian Keroles walks you through how to set up a multisig wallet with Caravan and how to spend from the wallet, along with explaining some of the benefits and nuances of Bitcoin multisig wallet security unique to Caravan.
The idea of Caravan is to make bitcoin multisig custody safer and easier to use. There are several things to be aware of before getting started:
Caravan is stateless and does not store data, so you will need to be prepared to store the created wallet’s extended public keys and BIP32 paths and addresses. Caravan makes this easy with a simple download. Caravan is also quite modular. You can choose up to seven keys to include in the multisignature and also adjust the quorum (number of signatures needed to sign a transaction) to whatever you like (e.g., 2-of-3, 3-of-5 or 3-of-7 signatures are needed, etc.). It also supports pay-to-script addresses, SegWit addresses and the P2SH-P2WSH address to bridge non-SegWit and SegWit-enabled addresses.
Christian provides a step-by-step tutorial on how to create and use a Caravan wallet along with a visual walkthrough. Basic steps include:
Step 1: Visit Caravan at caravanmultisig.com and click on “Wallet” to begin building your multisig wallet
Step 2: Configure your multisig Quorum settings with up to seven keys
Step 3: Select your wallet address type
Step 4: Customize your wallet name and key names
Step 5: Export the key information from your wallets
Step 6: Confirm your xpub information and click “confirm” to create your wallet
He also provides a step-by-step tutorial on how to spend from your Caravan multisig wallet:
Step 1: Click on the “Send” tab in the Caravan wallet interface
Step 2: Paste the address or addresses you want to send to
Step 3: Set your fee rate (sats/byte)
Step 4: Input the amount you wish to send or click “Max” to send your entire wallet balance
Step 5: Click “Preview Transaction”
Step 6: If the transaction details look good, click “Sign Transaction”
Step 7: Sign with your independent hardware wallets
Step 8: Click “Broadcast Transaction”
Of course, the video tutorial above provides much more detail and a visual walkthrough for those looking to access multisig custody through Caravan. Be sure to watch it and subscribe to Bitcoin Magazine’s YouTube page for more helpful Bitcoiner walkthroughs.