Newbie learning about multi sig. I watched a number of videos on how to set up multi sig using Electrum and various hardware wallets. I understand the mechanical steps one would go thru to set up multi sig. But something fundamental is not clear to me.
Let's say I set up a "2 of 4" scenario, where two of four individuals (via their hardware wallets) must sign a bitcoin transaction. Where is this "you must have two of these four" rule stored? Is it somewhere on the bitcoin blockchain?
Said differently, if I authorize a spend transaction using my hardware wallet (I am one of the four), how does the exchange (Coinbase, or any other non-Electrum) know that a second signature is required?
Thanks.
Have the idea of what a multi signature wallet is, the first thing to know is that this requires the signing in of two or more people, for instance, you may have to make use of electrum wallet in making a transaction and those involved in the signatories must also sign the transaction before it will be sent, while you have the option not to use a multisig while on electrum while setting the wallet up at first instance, lastly, the recipient of a transaction is not the one to sign the transaction, but a co-signer who is involved while setting up the wallet.