Multisig and Timelocks

10 min readinteractive

A timelock is a safe that cannot be opened until a specific date — enforced by the blockchain itself. Combined with multisig, you can create sophisticated custody arrangements: "2 of 3 signers, but after 1 year, 1 of 3 is enough" for inheritance planning.

Master advanced Bitcoin features: multisignature wallets and time-locked transactions.

Multisig Configurations:

  • 2-of-2: Both parties must sign
  • 2-of-3: Any two of three can sign
  • 3-of-5: Corporate treasury setup
  • N-of-M: Flexible threshold

Use Cases:

  • Escrow services
  • Corporate treasuries
  • Inheritance planning
  • Exchange cold storage

Timelock Types:

  • nLockTime: Transaction-level lock
  • OP_CHECKLOCKTIMEVERIFY: Script-level absolute time
  • OP_CHECKSEQUENCEVERIFY: Relative time locks

Enable features like payment channels, atomic swaps, and inheritance.

Key Takeaway

Timelocks and multisig together solve real problems: inheritance, business treasury management, and escrow services — all without trusting a third party.

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