Usage scenarios of ComingChat threshold wallet
First, we need to understand what a multi-signature wallet is. A multi-signature wallet is essentially an address aggregated from the addresses of multiple people. If you are Alice and you want to transfer 1bitcoin to Bob, you can first transfer the bitcoin to the multi-signature address, and then Each member who constitutes the multi-signature address signs with their own private key to transfer the bitcoin to Bob, thereby completing the transaction process.
Using a multi-signature wallet has more steps and the process is more cumbersome, but the advantage is that multi-signature wallets are more secure. In a multi-signature wallet, the leakage of the private key of a member who constitutes a multi-signature address will not cause asset loss.
ComingChat threshold wallet is a kind of multi-signature wallet. The difference is that ComingChat’s bitcoin threshold wallet uses the latest Bitcoin Taproot technology. (For Taproot, please refer to the previous article：https://chainx-org.medium.com/chainx-after-taproot-upgrade-of-bitcoin-1-c19cb8162d34) In short, Taproot makes the ComingChat threshold wallet more private and has lower fees than traditional multi-signature wallets. Of course, stronger privacy also means indirectly improving the security of user assets.
For most ordinary users, the ComingChat threshold wallet is not used frequently. Its main usage scenario is the BTC cross-chain process for the ChainX/SherpaX custodians.
When a user deposit bitcoin to the ChainX network (or deposit sBTC to the SherpaX network), it essentially transfers bitcoin to a custodian hot address formed by multiple custodians. Users’ bitcoins will be held by these custodians. When a user initiates a withdrawal request, these custodians need to use ComingChat’s threshold wallet to perform multi-signature to return the user’s bitcoin to the user.
For the tutorial on using the ComigChat threshold wallet, please refer to this article：https://comingchat.medium.com/how-to-get-started-with-btc-threshold-wallet-8b4dd2dee543