So if you haven’t already realized the intrinsic value of a security platform with multi-signature technology, then let’s dive into it a little bit deeper.
The beauty of having a two private key system is not just so that an individual can have extra security and peace of mind – it’s also perfect for creating a trustless joint account between 2 entities. This can be protocoled by utilizing 2 public keys to work in unison with their corresponding private keys. This form of encryption is what allows crypto-currency in the first place. It allows two-way cryptography. Your public keys are backed up inside your private keys. If you lose your public key “.share” files, you can still use your wallet. BUT, if you lose your “.private” key files you lose access to your account and your money. So again, make copies and secure them in another location(s). In summary, the public key is a key that can be shared amongst partners in a joint account or amongst counterparties within a contract. Think of them like “fingerprints” for your private keys. You can prove who it belongs to, but you cannot copy the key, nor utilize it to reveal the corresponding private keys they associate with.
With that understanding lets begin setting up our first joint account:
With BitBay, you don’t need to create two private keys at once. You can go to file/New Wallet, create the first private key, and then cancel when asked to create the second private key. This is how you form a joint account. The steps are as follows:
Create the first private key and cancel when asked for the second.
You or your joint partner makes the second key in the same way.
You and your partner exchange the public keys which are your “.share” files. You will find them in your Bitbay folder.
Then you go to File/Open Wallet and load the private key you created and the “.share”file that was sent to you. Now your new wallet will be created.
Using this single-key creation method, you and your partner spouse or child would create their key on a totally different computer and then send you the share file (the public key) associated with their private key. You will do the same, sending them your share file (public key) associated with your private key. In this way, you both have the counter-parties public key and your own private key.
Either of you can Open the wallet normally like any two-key wallet using
your private key and their shared key. This process will automatically store and pair their shared key in your private key file. From that point on, you need only open your private key since it can be considered “paired”.
It should be noted that in a joint account, you will not be able to negotiate contracts since your partner would have to approve every step (they have the second key). Instead, you and your partner would want to agree on any expenses and decisions regarding the account. In this single key mode, you can use the “Two Step Send” described later in this documentation.
You can also use the above method to create a shared account with yourself for added security by using two computers.