Multi-signature Wallets

Multi-signature, or multisig, wallets allow funds to be controlled by more than one private key. Instead of relying on a single account owner, a multisig wallet requires a predefined number of participants to approve a transaction before the funds can be spent.

This is useful when funds, assets, or permissions should be managed by a group instead of a single individual.

For example, a company may want two managers to approve a payment, or an escrow flow may require approval from two out of three parties before funds are released.

How multi-signature transactions work

In a regular blockchain transaction, an address can spend its funds only if the transaction is signed with the private key that corresponds to that address. Other participants on the network can verify the signature using public information, without needing access to the private key.

Multisig extends this model by creating an address controlled by multiple keys.

A multisig wallet is created from:

• N public keys, representing the total number of participants.
• M required signatures, representing the minimum number of private keys needed to authorize a transaction.

This is commonly called an M-of-N multisig setup.

For example, in a 2-of-3 multisig wallet, there are three possible signers, but only two valid signatures are required to spend the funds.

M-of-N signature requirements

In Hathor, multisig wallets follow the M-of-N model:

Given N regular addresses, at least M private keys corresponding to those addresses must sign a transaction before the multisig funds can be spent.

The value of M must be less than or equal to N.

Hathor supports multisig wallets where both M and N are at most 16. Hathor's current documentation also states that mainnet multisig addresses start with h, testnet multisig addresses start with w, while regular P2PKH addresses start with H on mainnet and W on testnet.

Common Multisig Configurations

1-of-N

A 1-of-N setup allows any one of the configured participants to spend the funds.

This can be useful when multiple trusted operators should be able to act independently, while still keeping an on-chain record of which key was used.

Example:

One of three employees can approve an operational transaction, but the company wants the blockchain to record which employee signed it.

2-of-2

A 2-of-2 setup requires both participants to approve the transaction.

This is useful when no single party should be able to act alone.

Example:

Two departments in a company must both approve a transaction before funds or assets can be moved.

2-of-3

A 2-of-3 setup requires any two participants out of three to approve the transaction.

This is commonly used for shared custody, recovery flows, or escrow-like arrangements.

Example:

Two counterparties can complete a transaction together, but a third party can help resolve disputes if one party becomes unavailable.

Multisig Address Prefixes

Hathor multisig addresses use different prefixes depending on the network.

Address type	Mainnet prefix	Testnet prefix
Multisig address	h	w
Regular P2PKH address	H	W

Address validation should be case-sensitive, because lowercase and uppercase prefixes represent different address types. Hathor's Headless Wallet multisig guidance also highlights the need to validate whether a user address is multisig and to keep validation case-sensitive. (Hathor Network)

Before creating a multisig wallet

Before creating a multisig wallet, decide:

1. Who the signers are Each signer must provide a public key or address used to build the multisig wallet.

2. How many signatures are required Choose the value of M based on the level of approval required.

3. How many total participants exist Choose the value of N based on the number of available signers.

4. How recovery should work Avoid configurations that make funds too easy to lose. For example, a strict 2-of-2 setup can be risky if one signer loses access to their private key.

5. Which network is being used Mainnet and testnet addresses use different prefixes.

Example

A team wants to create a wallet controlled by three people:

• Alice
• Bob
• Carol

They choose a 2-of-3 multisig setup.

This means:

• The wallet is created using three public keys.
• Any two of the three participants can sign a transaction.
• A single participant cannot spend the funds alone.
• The funds can still be spent if one participant is unavailable.

This setup balances security and availability.

Technical reference

Hathor's multisig implementation is based on a redeem script structure. More details about the multisig address format and redeem script are available in RFC-0005.