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0 sats \ 9 replies \ @DarthCoin 15h \ on: How do Organizations Self-Custdy their sats stash? bitcoin
Who cares about all those fiat maxis?
Whoever is announcing publicly his stash like "today we bought x BTC amount ..." in fact they do not buy anything but just IOUs or even nothing, is just a blatant lie to fool others.
Companies that are acquiring bitcoin in self custody you will never know them. See my old post about how I onboarded a small company almost 10 years ago... #692855
Thaks for sharing this old post, really useful. I took big organizations as an example, in reality could apply to any business. I know you have a guide that describe how to be your own bank. It works for personal use and when one is in charge with singleSig. But how it does scale for multiSig setups? There are any framework or guideline that can be useful also for smaller businesses?
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Just use any wallet app that support multisig. Nunchuck, Liana, Electrum, Sparrow, Specter, Bitcoin Safe and so on...
There are quite some (no, I didn't write a guide about that because are already a lot of guides).
I found @Andreasgriffin work with his Bitcoin-Safe #939847 a really interesting project.
For using LN is a bit more difficult. So a business with many employees managing funds, they will have to delegate / trust somebody to do the daily payments over LN if is necessary. But that you can "fix it" easily with a LN sub-account (LNbits, AlbyHub, NWC etc) and give them limited access to the whole node funds. For daily LN payments you don't really need multisig, it will be a hell of job, but for onchain cold reserves, I think is a must, especially when more people must access those funds.
Please from now on refer to my github page with guides. The substack one is not updated anymore:
https://darth-coin.github.io/beginner/be-your-own-bank-en.html
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for onchain cold reserves, I think is amust, especially when more people must access those funds.
That's what I'm talking about, especially when in the organization there are changes of directors or other possible threats to the cold reserve. It is a hell step learning curve for those that focus on doing and managing business, Especially if until yesterday they were relaying on banks to keep their funds safe. Today they can do themselves, not easy t learn how, especially if there isn't much guidance and documentation on it
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Yes, is not easy do manage the funds. I saw it myself in that company, where were 3 managing directors and a financial director.
But as you very well mentioned my guide, they must change the mindset and THINK like a bank. Keeping that 3 levels stash scheme is a must (cold, cache, spending).
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3 level of security make sense and should be used by everyone, 100% on it.
On the cold-storage level, do you think there should be any change in the process when setting up a 3-of-2 vs a 7-of-10 multisig? With process, I mean security practices before and after the multisig setup.
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Keep it simple. Think about practicality when is about to sign a tx.
Why would you need 7 keys to sign ?
Oh you want to be sure that at least 3 signers are available from 10 (maybe most of them are in vacation and cannot sign), then ok, make 3 of 10. But having 7 people to sign for a damn tx is too much and you complicate it enormously.
Also keep in mind that signing an onchain tx will be rarely, only when massive amount must be moved from a long term cold storage into a CACHE level.
All the rest must be in the CACHE level, where medium managers/signers can deal with smaller amounts and less important multisigs or singlesig.