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Multi-signature is a cryptographic technology used to increase the security of blockchain transactions. In this technology, to confirm a transaction, we need the signature of several parties, not just one. These signatures can be provided by different individuals or entities.
For example, suppose three people named A, B and C want to confirm a transaction. In this case, to confirm the transaction, there must be signatures of all three people in the transaction. If there are only two signatures, the transaction cannot be confirmed.
The use of multiple signatures helps secure blockchain transactions, as it is much more difficult to alter or falsify transactions by requiring access to all parties’ signatures. Also, this technology can be used in things like joint accounts, group wallets or bank transactions.
Multi-signature technology works mathematically using cryptographic algorithms. Each party in the transaction confirmation process has a private key that is used to sign the transaction. The transaction is also converted into a set of original numbers using a hash algorithm (such as SHA-256).
When a transaction takes place, its hash is first calculated. All parties (such as A and B in the previous example) then use their private keys to sign the hash and add their signatures to the transaction. Finally, the transaction is sent to the network with the signatures of all parties.
To confirm the transaction, the rest of the network members (such as C in the previous example) must verify the hash signature using the parties’ public keys. If all signatures are valid, the transaction is confirmed and recorded in the blockchain.
Using multiple signatures means that all parties must participate in the transaction confirmation process, and none of them can confirm the transaction alone.
Also, multiple signature technology can be used as an access management tool in blockchain systems. By setting rules for verifying the transaction (such as the number of signatures and the identity of the parties), it can be easily controlled.
By using multi-signature, precise rules can be set for validating transactions. For example, it can be determined that at least 3 signatures from the 5 parties participating in the transaction are required for the transaction to be approved. Or, the amount of account balance can be limited and the transaction approval needs to be signed by multiple parties to exceed this limit.
Multi-signatures can also be useful in cases where there is a need for group agreement to complete a transaction. For example, if a group of individuals or organizations have agreed to carry out a transaction, all members must put their signatures on the transaction to confirm the transaction.
In general, the use of multiple signatures in the blockchain helps to increase the security and control of transactions.
Multi-signature is an important blockchain technology that adds security and reliability to transactions.
By using multiple signatures, it is possible to set precise rules for confirming transactions and easily control which parties should participate in the confirmation process. Also, this technology can be useful in cases where there is a need for group agreement to carry out a transaction.
