In the current scenario, peoples are moving towards the digital currency for their business transactions due to the decentralization eradicating 3rd party authentication like banks. Large emerging crypto exchanges on the global markets with new features and innovative technologies to handle the cryptos. 

Crypto exchange platforms adopt advanced features to assure security and loyalty for users. Crypto exchanges are adopting multi-sig technology to strengthen the security of their wallets. 

What is a multi-signature wallet?

A Cryptocurrency wallet normally possesses two keys namely public key and private keys whereas in a Multi-signature wallet it requires more one private keys to access the Crypto wallet. A multi-signature wallet is used to provide a double lock system by using more than one user's private keys to login and validate the transactions.

Issues with traditional custody solutions

In normal wallets lacks in transparency and not providing full control to the wallet owners. Due to hacking huge number of crypto holders has lost their cryptocurrencies on crypto exchanges.
Let us see how it affects the crypto holders.

Targeting Crypto Exchanges: Hackers are targeting crypto exchanges to theft the user cryptos on wallets through illicit access to the exchanges. For example, hackers theft the 7000 BTCs from Binance in May 2019, and UPbit lost 340,000 ethers in November 2019.

Imperiled user accounts: On the single user wallet, if users lose his username, password, wallet as a result of hacking the user email address and his phone. He is unable to get his wallet on crypto exchanges. 

Halted crypto accounts: The exchanges may suspend the wallet and crypto account to limit you from trading or withdrawing funds. when a crypto exchange thinks some malicious activity or it may happen unexpectedly. 

Uncertainty of insolvency: The exchanges may not provide you sufficient funds at times of uncertainty that happed at exchanges due to the hacker's theft the crypto reserves of the exchanges where users cryptos are stored. Exchanges must settle the lost cryptos of the user on the reserves.

Crypto Exchanges are reinforcing their platforms with a multi-signature wallet to avoid the above-said issues.

A solution for abundance and a particular point of failure

Cryptocurrency holders possess their crypto from an exchange and safely store them in a hardware wallet. It helps to improve transparency, increases the control over their funds, it reduces the risk associated with web wallets at crypto exchanges as they are vulnerable to the theft.
Unfortunately in the case of hackers from know person, steals your hardware wallet, where the user has lost wallets and funds. To avoid the loss of your funds on wallets, from your crypto wallets crypto exchanges are providing multi-signature wallets. 

Here we will see the key benefits of the Multi-sign Wallet 

Keys are distributed: The keys are shared among various geographical locations and over many devices, through building a secure space for a user. Hackers cannot hack multiple devices to get the shared key on various devices to secure the crypto assets of the users.

Full transparency: In a multi-sign wallet where the user transactions are transparent and stored on the software and can be called on any instance. The crypto transactions are stored and never mingled the transactions and withdrawals.

Redundancy against loss: In multi-sign wallets, the transactions need to verify by the co-signers to validate the transactions on the wallet and it provides additional security to the crypto wallets from hackers.

Group decision making: In multi-sign wallets the keys are managed collectively by multiple co-signers, then the control of funds grows safer and in a more systematic manner. Here, only consistent decisions can be formed and executed, and thus a good decision is carried out finally.

Conclusion

The security, isolation, and liberty of transactions intensify with multisig features in a cryptocurrency wallet. For building a secure cryptocurrency wallet you can combine advanced security features into the wallet. 

Osiz Technologies specialize in providing a white-label multi-signature wallet reinforced with market-leading peculiarities to secure your cryptocurrencies on the Crypto exchanges. We provide enhanced security features like mnemonics, biometric authentication, multi-currency support, QR code scanner, NFC support, self-explanatory interface, and more.