So, I am building a new tool on Steemcryptic that would provide a GUI for multi-sig transfers on Steem. On other blockchains, the multi-sig process is usually a manual process in which one would need to sign a transaction and send the signed transaction file onto the next user to sign, and only after the minimum number of signatures are received, the transaction would be broadcasted on the blockchain.

This is definitely a great way to go about things. However, this would mean that you still need to send over the signed transaction to the others to get their signature for the same.

In the new tool that I am building, I am planning on automating this process. So, how this would work is, a transaction once signed by one user could then be viewed by all the other users who have authority over the particular transaction.

I plan on using the custom ops to automate this and the signed transaction would be encrypted before it is broadcasted on-chain. I believe that this automated process would make multi-sig more user-friendly and many users can then use it to secure their accounts further. The end goal of this tool is to help all the high stakeholders on steem use it with less fear of losing their funds. Because, with multi-sig in place, no funds would be lost unless the minimum weighted threshold is reached.

Rough Flow Explained:

^{Flow diagram}

The above diagram explains the flow of events in the case of an automated multi-sig transfer. The encryption of the partially signed transaction would happen using a password that a particular user sets for that transaction. So, to decrypt the partially signed trx, the second authority would need to enter this password/pin itself.

The alternative way would be to not broadcast the transaction as a custom op but to manually share the signed transaction with the second signatory. I think I would add both of these features to this tool. However, do let me know your opinion on if you know of any risk on broadcasting a partially signed transaction as an encrypted custom op.

PS: Partially signed transactions on the Steem blockchain need to be broadcasted within an hour. This means that if the minimum threshold is not reached within 1 hour of when the transaction was created, then it would fail to transfer This is a drawback at the blockchain level itself. So, we would still need to live with this flaw.