Ethereum: Multi-signature and “pay to script hash” vs. “pay to pub hash key”
Here is an article about the two methods of multi-signature transactions in Ethereum and their differences:
Multi-Signature Transactions: At Comparison
In the world of cryptocurrencies, multi-signature transactions have become a secure and reliable way to conduct financial transactions. Two popular methods to achieve this security are “payment by public key hash” (P2PH) and “payment by script hash”. In this article, we will delve into the details of each method, highlighting their strengths and weaknesses.
Payment by Public Key Hash (P2PH)
The first method of multi-signature transaction is payment by public key hash, commonly known as P2PH. This approach involves creating a single public key hash from multiple private keys, which are then used to spend the cryptocurrency.
Here is how it works:
- A user creates a new wallet and stores a list of their private keys.
- Creates a transaction with a specified amount of cryptocurrency (e.g., 10 ETH).
- For each recipient, they add their private key as an input parameter to the transaction.
- The transaction is then broadcast to the network, which includes the hash of the user’s wallet’s public key.
Pay to Script Hash
The second method of multi-signature transaction is pay-to-script-hash (P2S). This approach involves creating a single script from multiple private keys and using it to spend cryptocurrency.
Here’s how it works:
- A user creates a new wallet and stores a list of their private keys.
- Creates a transaction with a specified amount of cryptocurrency (e.g., 10 ETH).
- For each recipient, they add their private key as an input parameter to the transaction.
- The script is created by combining the user’s wallet’s public key hashes and each recipient’s private key.
Differences between P2PH and P2S
While both methods aim to provide multi-signature security, there are some significant differences between them:
- Input parameters: In P2PH, input parameters (private keys) must be specified for each recipient. In contrast, in P2S, input parameters can be any type of data (e.g., script hashes).
- Script complexity: P2S requires a more complex script to build, as it must include all private keys and public key hashes.
- Security: Both methods are secure, but P2PH has some inherent advantages. For instance, if a recipient’s private key is compromised, the damage is limited to that specific transaction. On the other hand, if multiple recipients’ private keys are compromised, the attacker can spend the cryptocurrency from all transactions.
Conclusion
In conclusion, multi-signature transactions offer an attractive solution for secure and reliable financial transactions on Bitcoin and Ethereum. While P2PH offers a simpler approach with inherent security benefits, P2S offers greater flexibility and customization options. As the use of multi-signature transactions continues to grow, it is essential to consider the strengths and weaknesses of each method to ensure optimal security and performance.
I hope this article helps! Please feel free to contact me if you have any further questions or need clarification on any aspect.
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