Ledger CTO Warns: "Bitcoin (BTC) Multisig is More Dangerous"

▲ Bitcoin (BTC)

A warning has emerged that multi-signature wallets, introduced to enhance Bitcoin (BTC) security, could actually increase recovery and management risks. The Chief Technology Officer of Ledger emphasized that one should not rush to switch to complex wallet structures solely based on Coldcard security incidents.

According to crypto media outlet U.Today on August 4 (local time), Charles Guillemet, CTO of Ledger, stated that multi-signature wallets should not be unconditionally chosen as a countermeasure to recent Coldcard incidents. He explained that as the security structure becomes more sophisticated, new risks such as configuration errors and recovery failures can arise.

Multi-signature wallets require approval from multiple private keys to move assets. While this can reduce the risk of a single private key being compromised, it also complicates backup and recovery procedures. Guillemet pointed out that many users are creating structures that are difficult to recover safely, stating, “Multisig makes wallet recovery and management more difficult.”

As an alternative, Guillemet proposed Miniscript, a tool for designing Bitcoin spending conditions. Using Miniscript, one can set conditions such as inheritance, recovery keys that can be used after a certain period, and methods requiring approval from two out of three keys. He explained that Ledger's signature verification function allows users to directly verify the spending path they intend to approve on a hardware wallet.

Guillemet revealed that he created a Bitcoin wallet supporting advanced spending conditions in just a few hours using the AI assistant Claude. He also mentioned MuSig2 as an alternative to the existing multi-signature method. He stated that, to his knowledge, only Ledger hardware wallets currently support MuSig2.

Guillemet acknowledged that multi-signature is a suitable option for some users. However, he emphasized that wallet security methods should be decided based on individual threat environments rather than fear of recent incidents. He assessed that a sufficiently backed-up single-signature hardware wallet is the most practical choice for most users.

[Article Key Summary]

-Ledger's CTO warned against rushing to switch to multi-signature wallets after the Coldcard incident.

-Multisig can reduce the risk of private key theft but can complicate wallet management and recovery procedures.

-Guillemet assessed that a sufficiently backed-up single-signature hardware wallet is practical for most users.

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