Re: Donning tin foil hat concerning multisig transactions

RE: multisignature transaction dangers: I'm completely convinced the (large, practical) benefits far outweigh the (small, theoretical) risks that it'll be abused by some repressive government(s).

Wait, so OP's scenario is plausible?? I thought the multisig transaction idea was suppose to have a backup wallet where you didn't need anything else to have access to your Bitcoins?

Multisig is like requiring two people to know only half of a password each, instead of both of them knowing the full password.

I understand that but I thought when this idea was first presented it was said that the user would keep both key's a in a backup wallet so you couldn't be held hostage with your service provider.

This crossed my mind a while ago, happy i'm on the same page with others. So we would have a great benefit with increased wallet protection and easier escrow but any government could adopt bitcoin as legal tender and force everyone use the multisig too. Crippling the Bitcoin client to generate only multisig with a predefined gov key would be easy given that the project is open-source.