Connections allow you to share keys with other Unchained users.
Establishing a “Connection” with another Unchained account allows you to share keys with each other. Shared keys can be used to create new vaults where multiple Unchained users are collaborators.
Learn: We outline our vision for collaborative custody in the report Bitcoin Needs a Network of Keys.
Why would I want to share keys?
Many people and businesses aren’t comfortable with holding a majority of their keys. They don’t want to—or can’t—be in a position where an attack or a mistake could lead to losing their bitcoin.
If you’re a knowledgeable Unchained client who already holds keys, you might want to assist your friends, family, or anyone less technologically savvy to build their own vault.
Alternatively, if you have bitcoin on an exchange or singlesig hardware wallet, multisig is a massive upgrade to your security. However, managing a second hardware wallet and seed phrase can be daunting. Utilizing a family member’s key can relieve that burden while giving you the benefits of multisig.
Learn: If you or your connection partner are new to Unchained or multisig, check out our blog post: What is multisig?
How shared keys work:
When a key owner shares a key, that key will appear as a shared key in the recipient’s Keys page. The receiving connection partner may use that key to create a new multisig vault. If the connection partner wants to withdraw bitcoin, they can request the key owner to sign the transaction.
It’s also important to highlight what does NOT happen with shared keys:
- Unchained users never share sign in information, passwords, or 2FA.
- The key owner is not giving physical access to their hardware wallets.
- The key owner is not sharing seed phrases or private keys.
- If a vault owner requests a key signature, it is not automatic; the key owner must sign into Unchained and use their hardware wallet to sign.
An example:
Suppose Jim is an Unchained client using two Trezor hardware wallets. His friend Pam holds bitcoin on a singlesig Ledger but wants to upgrade to an Unchained vault.
Pam signs up for an Unchained account, pays, and adds her Ledger key to the new account. Jim connects with her by sharing a unique code from his Connections page, and Pam pastes the code on her own Connections page.
Jim may select one and share one of his Trezor keys with Pam. This can all happen remotely, without needing to meet up in person. Pam creates a new multisig vault using her Ledger, Jim’s shared Trezor key, and the Unchained backup key.
Finally, Pam uses Ledger Live to transfer her singlesig bitcoin to the Unchained vault.
When Pam needs to withdraw bitcoin, she creates a withdrawal transaction and selects two keys to sign — her Ledger and Jim’s Trezor. Jim receives an email from Unchained with a link to the transaction. Jim clicks the link, signs in with his username and password, and sees the transaction. Jim signs the transaction using his Trezor on his own computer.
Tip: Ready to get started with connections? See our guides: How do I make a connection? and How do I share a key with someone?
Allowing a Connection to maintain a key in your collaborative custody setup bears significant risks. Unchained has not vetted any connection you make using this feature, and does not make any assurance as to the fitness for the given task or fitness of character of any potential keyholder you select. Unchained bears no liability for actions or inaction of any keyholder selected using this feature. Please do your own research, and review the Unchained Terms of Service.