A shared wallet is held by several people, and a spend needs a set number of them to sign. Scrypt Wallet's shared wallets use Litecoin multisig and are available for Litecoin only.
How it works
You create a shared wallet and add members. You choose a signing threshold, for example two of three, and a spend only goes through once that many members have approved it. Members use dedicated signing keys for the shared wallet.
When it helps
- Shared funds, such as a club, a team treasury or a family reserve.
- Spreading risk, so one lost or compromised key can't move the money alone.
Step by step
1. Open the shared wallets section of Scrypt Wallet and create a new shared Litecoin wallet.
2. Invite the members and choose the threshold.
3. Each member confirms and keeps their signing key backed up.
4. Receive Litecoin to the shared address, then start a spend and collect approvals.
What can go wrong
If you set the threshold too high, one unavailable member can block every spend. If you set it too low, fewer people than you intended can move the funds. Members who leave need to be handled before you add more money. Test with a small amount and a full approval round before you rely on it.
Before you add funds
1. Review the members and the threshold. Make sure the number of required signers matches what you want.
2. Back up your signing key. If too many members lose their keys, the funds can be stuck.
3. Send a small test amount and complete a test spend.
4. Remember it is Litecoin only. Shared wallets do not exist for every coin.