Description of the bitcoin wallet used in Helperbit and its characteristics for the different types of users.
What is a multisignature bitcoin wallet?
A bitcoin wallet is a software created to store math-based currency (also called cryptocurrency) and can be equated to a bank account, where the bitcoin address corresponds to the IBAN and the password (here called passphrase, consisting of 12 words) is unique and generated when the wallet is created.
In Helperbit it is not necessary to download any software, as the procedure for generating the passphrase takes place on your browser (client-side).
The characteristic of this wallet is to be non-custodial and multisignature (M of N): N passphrases are generated, but M passphrases (fewer than generated) are requested to send a transaction. Helperbit manages only one passphrase, which means it has no decision-making power.
This increases the security of the wallet, protecting it from internal mistakes (loss of a passphrase or incorrect backup), and from external attacks by malicious people.
Types of bitcoin wallets available in Helperbit
For non-profit organizations and public entities, bitcoin wallets are “3 of 4” type, with 3 passphrases managed by the organization and one in the hands of Helperbit, as a backup. 3 passphrases are required to send transactions, so the User is able to operate independently. Helperbit instead, with only one passphrase, can not access the funds.
For Single Users and Companies, bitcoin wallets are “2 of 3” type, with 2 passphrases managed by the User/Company and one by Helperbit, as a backup. 2 passphrases are required to send transactions, so the User is able to operate autonomously. Helperbit instead, with only one passphrase, can not access the funds.
To meet the needs of structured stakeholders, a bitcoin wallet with a customized number of passphrases can be generated upon request.
During the wallet creation process, you are invited to download a backup file. It is important to keep it consciously, as it allows you to recover the funds. Even the 12 words that represent the passphrase must be kept safe, not easily accessible by other people: we suggest to not keep them on your computer, unless in a very safe way, but to write them on several paper copies. If you lose a copy, you are still have the other passphrases copies.
In case that more than one passphrase is lost, the access to the wallet is compromised. Neither Helperbit nor the Bitcoin network have the power to recover the funds, as only the User is the owner of his wallet.
How to recover your funds if you have lost a passphrase
Helperbit has developed an open source recovery service that helps Users in case of loss of a passphrase.
Click here and fill out the forms with the requested information. In case of problems, write an email to firstname.lastname@example.org with the subject “Wallet Recovery”.
Read also: Helperbit’s Manifesto