Multi-signing in the XRP Ledger (XRPL) is introduced to make the system secure and flexible. This feature allows authorized transactions using multiple secret keys; this brings shared control over an address and provides an effective contingency plan in case of lost keys. XRPL users can enable multi-signing alongside other authorized methods, such as master and regular key pairs, which will ensure that at least one method remains active all the time. Now, below, you’ll explore the key benefits of multi-signing, how to set it up, and more.
Key Benefits of Multi-Signing
- Enhancing security: The multiple signing features allow signing using multiple keys from different devices, reducing the risk of unauthorized transactions by making it significantly harder for malicious entities to compromise the account.
- Shared custody: Multi-signing allows multiple people to share control of an address, making it ideal for joint accounts or business operations requiring multiple approvals.
- Delegation of control: Users can authorize a group to manage their transactions on their behalf in case they aren’t available or unable to sign transactions.
Setting Up Multi-Signing: Signer Lists
Before utilizing multi-signing, users need to define a SignerListSet transaction, which establishes a list of authorized signers. This list includes addresses between 1 and 32, excluding the addresses setting up the list. Each signed entry has two important parameters:
- Signer weight: This determines each signer’s relative authority. A higher weight means more influence over transaction approval.
- Quorum: This specifies the minimum weight required to validate a transaction. The quorum should be above zero and less than or equal to the total weight of all signers in the list.
Additionally, the Wallet Locator feature of XRPL allows users to add up to 256 bits of arbitrary data per signer entry, which helps smart contracts and applications verify signer identities. For insights into how these changes may affect future transactions and investments, check out the latest XRP price prediction.
Examples of Signer Weight and Quorum in Action
- Simple shared account: A quorum of 1 with multiple participants, each having a weight of 1, gives any participant the authority to approve a transaction individually.
- High-security account: A quorum of 3 with three signers, each assigned a weight of 1, ensures that all signers approve every transaction.
- Corporate governance: A quorum of 3 could include a CEO (having a weight of 3), a Vice President (having a weight of 2 each), and Directors (having a weight of 1 each). In this case, transactions may be approved by 3 Directors, a Vice President and a Director, two Vice Presidents, or just the CEO.
- Backup plan: A signer list with three friends (weight 1 each and quorum 3) can act as an emergency recovery mechanism if the primary key is lost.
Submitting Multi-Signed Transactions
To successfully send a multi-signed transaction, users must follow the below-mentioned steps:
- Define a SignerList: The sending account must have an active signer list.
- Configure the transaction: The SigningPubKey field must be empty, and the Signers field must contain the necessary signature.
- Ensure signer compliance: The signatures must match those listed in the SignerList, and their combined weight must meet or exceed the quorum.
- Calculate the transaction fee: The fee must be at least (N+1) times the normal transaction cost, where N is the number of signatures.
- Predefine fields: All the transaction fields must be set before collecting the signatures, and no auto-filling is permitted.
- Sort signers correctly: When submitted in binary form, signers must be arranged in ascending order based on their addresses. The submit_multisigned automatically handles the sorting in JSON submission.
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Conclusion
Multi-signing in XRPL contributed by offering essential security and governance layer components to the space. The features allow users to implement robust authorization mechanisms that are tailored to their specific needs. By properly configuring signer lists, weights, and quorum settings, you, as an XRPL user, can safeguard your assets and manage seamless transactions.