Dealing with Multisig addresses and transactions

Multisignature (often called multisig) is a form of technology used to add additional security for cryptocurrency transactions. Multisignature addresses require another user or users sign a transaction before it can be broadcast onto the block chain. (Source: Wikipedia)

In this short guide, we will demonstrate the creation and usage of a 2of2 multisignature wallet. We'll use 2 nodes and the Komodo chain. On a Komodo smartchain, follow the same steps but add the -ac_name=COIN parameter.

There are various tools you can use for multisig. Check the related materials section at the end of this guide for links.

Step 1 - Get new addresses, corresponding pubkeys and privkeys

First, let's create addresses on the two nodes. Then we will combine them into a single multisig address. We will also need the pubkey and privkey (WIF) for each address:

Node 1

Generate a new address

Command:

./komodo-cli getnewaddress

Output:

RDomQ4tftJGjcHBVpAUx549jZfxtJx74r5

Get the pubkey value using `validateaddress`

Command:

./komodo-cli validateaddress RDomQ4tftJGjcHBVpAUx549jZfxtJx74r5

Output:

{
  "isvalid": true,
  "address": "RDomQ4tftJGjcHBVpAUx549jZfxtJx74r5",
  "scriptPubKey": "76a91431a8cbc716e21238079729d46cb655ae7fadc9e388ac",
  "segid": 37,
  "ismine": true,
  "iswatchonly": false,
  "isscript": false,
  "pubkey": "02dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a26",
  "iscompressed": true,
  "account": ""
}

Get the private key (WIF)

Command:

./komodo-cli dumpprivkey RDomQ4tftJGjcHBVpAUx549jZfxtJx74r5

Output:

UrunDGyFJu5UFZG7BnFx9R6iaPmWaBX8iqHzRpFRjNp8kBEQYKNt

To summarise data from Node 1

address: RDomQ4tftJGjcHBVpAUx549jZfxtJx74r5
pubkey:  02dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a26
privkey: UrunDGyFJu5UFZG7BnFx9R6iaPmWaBX8iqHzRpFRjNp8kBEQYKNt

Node 2

On a different node, follow the same steps to generate new address, validate and export the private key.

Generate new address

Command:

./komodo-cli getnewaddress

Output:

RBqZ6nHcANekX3zxF9y4zRyfB6X8VEWF7s

Get pubkey value using `validateaddress`

Command:

./komodo-cli validateaddress RBqZ6nHcANekX3zxF9y4zRyfB6X8VEWF7s

Output:

{
  "isvalid": true,
  "address": "RBqZ6nHcANekX3zxF9y4zRyfB6X8VEWF7s",
  "scriptPubKey": "76a9141c0f1c482d38c43bb847506a527521d2204afe6588ac",
  "segid": 38,
  "ismine": true,
  "iswatchonly": false,
  "isscript": false,
  "pubkey": "032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a2816",
  "iscompressed": true,
  "account": ""
}

Get the private key (WIF)

Command:

./komodo-cli dumpprivkey RBqZ6nHcANekX3zxF9y4zRyfB6X8VEWF7s

Output:

UsuE7jG8BD1CV2xuCoBCwgzzbs4HqZ2P2im5fdyJmP2tSd3arAv7

To summarise data from Node 2

address: RBqZ6nHcANekX3zxF9y4zRyfB6X8VEWF7s
pubkey:  032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a2816
privkey: UsuE7jG8BD1CV2xuCoBCwgzzbs4HqZ2P2im5fdyJmP2tSd3arAv7

Step 2 - Create multisig Address

Now we can combine pubkeys to create a multisig (2of2 in this example) address. You can execute the following command on any node. The command will output the redeemScript which is required to spend funds.

Command:

./komodo-cli createmultisig 2 '["02dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a26","032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a2816"]'

Output:

{
  "address": "bEP3HK73CboW8tGN8obyHUQteBzYjFzgNm",
  "redeemScript": "522102dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a2621032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a281652ae"
}

Step 3 - Fund the multisig address

Let's fund our multisig address. You can send funds from any source.

Command:

./komodo-cli sendtoaddress bEP3HK73CboW8tGN8obyHUQteBzYjFzgNm 7.77

Output:

194fea388c5474ae25d261d8c57213b79f9a111e774caeea066f796ddd99e81c

Step 4 - Create rawtransaction to spend funds

Now let's spend funds from the multisig address. We need to create a rawtransaction first. As inputs, we are using the unspent vout of the transaction through which the multisig address was funded. As the destination address, we use the address to which we want to send the funds.

Please note that in this example, we are sending the whole deposited funds back, but in the case where you don't want to send all the amount, you have to manually specify a second (change) output. Because, by default the difference between inputs and outputs is counted as miner fee. Most probably you'll get the AcceptToMemoryPool: absurdly high fees error because of this reason. (This type of transaction can be allowed by using an additional parameter to the sendrawtransaction method set to true which actually sets allowhighfees=true, but it is very unlikely that you want to do it).

Command:

./komodo-cli createrawtransaction '[{"txid":"194fea388c5474ae25d261d8c57213b79f9a111e774caeea066f796ddd99e81c","vout":1}]' '{"RP81MSVu39QgXhGDHfnk9d9KMnp4vhEVBu":7.77}'

Output:

0400008085202f89011ce899dd6d796f06eaae4c771e119a9fb71372c5d861d225ae74548c38ea4f190100000000ffffffff014014502e000000001976a91497d5106d5f69619803eb8d72a2bf45a4f033338a88ac00000000a80000000000000000000000000000

Step 5 - Sign the rawtransaction

You need to sign the raw transaction using both nodes to be able to broadcast & spend.

Node 1

Command:

./komodo-cli signrawtransaction "0400008085202f89011ce899dd6d796f06eaae4c771e119a9fb71372c5d861d225ae74548c38ea4f190100000000ffffffff014014502e000000001976a91497d5106d5f69619803eb8d72a2bf45a4f033338a88ac00000000a80000000000000000000000000000" '[{"txid":"194fea388c5474ae25d261d8c57213b79f9a111e774caeea066f796ddd99e81c","vout":1,"scriptPubKey":"a914121cbc7a828772bd4612bc7b9765cbbf13d0b3cc87","redeemScript":"522102dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a2621032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a281652ae","amount":7.77}]' '["UrunDGyFJu5UFZG7BnFx9R6iaPmWaBX8iqHzRpFRjNp8kBEQYKNt"]'

Output:

{
  "hex": "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",
  "complete": false,
  "errors": [
    {
      "txid": "194fea388c5474ae25d261d8c57213b79f9a111e774caeea066f796ddd99e81c",
      "vout": 1,
      "scriptSig": "00483045022100a5f4bdf5b61a4f4baf0b5b48f69488b8f752e36cbac23ec0c762bba99552ac9e022036e658c7c8c19ec4bd423fcc6a109a811b189311fc874dd466e58a1755ef4e940147522102dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a2621032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a281652ae",
      "sequence": 4294967295,
      "error": "Operation not valid with the current stack size"
    }
  ]
}

Node 2

Use the HEX value obtained from Node 1's signature output and change the privkey to Node 2's privkey.

Comamnd:

./komodo-cli signrawtransaction "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" '[{"txid":"194fea388c5474ae25d261d8c57213b79f9a111e774caeea066f796ddd99e81c","vout":1,"scriptPubKey":"a914121cbc7a828772bd4612bc7b9765cbbf13d0b3cc87","redeemScript":"522102dd22c272504af79b220ba37c12f777596eff4f54598e2db65be325a9393a3a2621032a73cd31fb86150c33f26312b665c21e5f9391829f29cf48aca03bbb4f9a281652ae","amount":7.77}]' '["UsuE7jG8BD1CV2xuCoBCwgzzbs4HqZ2P2im5fdyJmP2tSd3arAv7"]'

Output:

{
  "hex": "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",
  "complete": true
}

We need to broadcast the above raw HEX to finish sending our transaction.

Step 6 - Broadcast the transaction

Finally we are ready to broadcast our multisig transaction:

Command:

./komodo-cli sendrawtransaction 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

Output:

23c2aaaf458ada3f171ee5d274e8dcfc91b62099ec15e4b2d02da2b2d1172cb1

Where 23c2aaaf458ada3f171ee5d274e8dcfc91b62099ec15e4b2d02da2b2d1172cb1 is the output transaction id which you can use in an explorer or similar places to verify the transaction.

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Dealing with Multisig addresses and transactions