Bitcoin wallets store the private keys that you need to access a bitcoin address and spend your funds. They come in different forms, designed for different types of devices. You can even use paper storage to avoid having them on a computer at all. Of course, it is very important to secure and back up your bitcoin wallet.
There are many different types of bitcoin wallets, such as desktop wallets, online wallets, hardware wallets and even paper wallets. Some (like Cancoin) offer multi-signature wallets for another layer of security and functionality.
The main purpose of a good bitcoin wallet is security. But, we also want to be able to use our bitcoins freely and easily, in any situation. The ultimate security for your bitcoins would be to generate an offline wallet and bury the private key in a lead safe 10 feet underground, but this doesn’t work for a lot of bitcoin users. That is why the best bitcoin wallets find the ‘sweet spot’ between usability and ultimate security.
Cancoin uses multi-signature (P2SH) transaction signing (one that you hold hold and Cancoin does not know, and one that Cancoin holds and you don’t know). Only the combination of these 2 keys will unlock and send your bitcoins. Each Cancoin order includes a unique multi-signature wallet to handle order escrow for the buyer and seller.
To learn more about Cancoin Multi-signature bitcoin wallets click here.