Add BIP 45 for "Structure for Deterministic P2SH Multisignature Wallets"

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 | Standard
 | Draft
 |-
+| [[bip-0045.mediawiki|45]]
+| Structure for Deterministic P2SH Multisignature Wallets
+| Manuel Araoz
+| Standard
+| Draft
+|-
 | [[bip-0050.mediawiki|50]]
 | March 2013 Chain Fork Post-Mortem
 | Gavin Andresen
diff --git a/bip-0045.mediawiki b/bip-0045.mediawiki
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+<pre>
+  BIP:     BIP-0045
+  Title:   Structure for Deterministic P2SH Multisignature Wallets
+  Authors: Manuel Araoz <manu@bitpay.com>
+           Ryan X. Charles <ryan@bitpay.com>
+           Matias Alejo Garcia <matias@bitpay.com>
+  Status:  Draft
+  Type:    Standards Track
+  Created: 2014-04-25
+</pre>
+
+==Abstract==
+
+This BIP defines a structure for hierarchical deterministic P2SH multi-party
+multi-signature wallets (HDPM wallets from now on) based on the algorithm
+described in BIP-0032 (BIP32 from now on) and purpose scheme described in 
+BIP-0043 (BIP43 from now on).
+This BIP is a particular application of BIP43.
+
+==Motivation==
+
+The structure proposed in this document allows for standard ways to create,
+use, import, and store HDPM wallets. It allows to handle multiple parties sharing
+an m-of-n wallet, on the following assumptions:
+* n parties share an m-of-n wallet.
+* Each party generates their master private keys independently.
+* Multisig P2SH is used for all addresses.
+* BIP32 is used to derive public keys, then create a multisig script, and the corresponding P2SH address for that script.
+* Address generation should not require communication between parties. (Thus, all parties must be able to generate all public keys)
+* Transaction creation and signing requires communication between parties.
+
+This BIP will allow interoperability between various HDPM wallet implementations.
+
+==Specification==
+
+We define the following levels in BIP32 path:
+
+<code>
+m / purpose' / cosigner_index / change / address_index
+</code>
+
+Apostrophe in the path indicates that BIP32 hardened derivation is used.
+
+Each level has special meaning described in the chapters below.
+
+===Purpose===
+
+Purpose is a constant set to 45, following the BIP43 recommendation.
+It indicates that the subtree of this node is used according to this specification.
+
+<code>
+m / purpose' / *
+</code>
+
+Hardened derivation is used at this level.
+
+
+===Cosigner Index===
+
+The index of the party creating a P2SH multisig address. The indices can
+be determined independently by lexicographically sorting the purpose public
+keys of each cosigner. Each cosigner creates addresses on it's own branch,
+even though they have independent extended master public key, as explained 
+in the "Address generation" section.
+
+Note that the master public key is not shared amongst the cosigners. Only the
+hardened purpose extended public key is shared, and this is what is used to
+derive child extended public keys.
+
+Software should only use indices corresponding to each of the N cosigners
+sequentially. For example, for a 2-of-3 HDPM wallet, having the following
+purpose public keys:
+<pre>
+03a473275a750a20b7b71ebeadfec83130c014da4b53f1c4743fcf342af6589a38
+039863fb5f07b667d9b1ca68773c6e6cdbcac0088ffba9af46f6f6acd153d44463
+03f76588e06c0d688617ef365d1e58a7f1aa84daa3801380b1e7f12acc9a69cd13
+</pre>
+
+it should use `m / purpose ' / 0 / *` for 
+`039863fb5f07b667d9b1ca68773c6e6cdbcac0088ffba9af46f6f6acd153d44463`, 
+`m / purpose ' / 1 / *` for
+`03a473275a750a20b7b71ebeadfec83130c014da4b53f1c4743fcf342af6589a38`,
+and `m / purpose ' / 2 / *` for
+`03f76588e06c0d688617ef365d1e58a7f1aa84daa3801380b1e7f12acc9a69cd13`,
+as dictated by their lexicographical order.
+
+
+Software needs to discover all used indexes when importing the seed from
+an external source. Such algorithm is described in "Address discovery" chapter.
+
+Non-hardened derivation is used at this level.
+
+===Change===
+
+Constant 0 is used for external chain and constant 1 for internal chain (also
+known as change addresses). External chain is used for addresses that are meant
+to be visible outside of the wallet (e.g. for receiving payments). Internal
+chain is used for addresses which are not meant to be visible outside of the
+wallet and is used for return transaction change.
+
+For example, if cosigner 2 wants to generate a change address, he would use
+`m / purpose ' / 2 / 1 / *`, and `m / purpose ' / 2 / 0 / *` for a receive
+address.
+
+Non-hardened derivation is used at this level.
+
+===Address Index===
+
+Addresses are numbered from index 0 in sequentially increasing manner.
+This number is used as child index in BIP32 derivation.
+
+Non-hardened derivation is used at this level.
+
+===HDPM Wallet High-level Description===
+Each party generates their own extended master keypair and shares the
+extended purpose' public key with the others, which is stored encrypted.
+Each party can generate any of the other's derived public keys, but only
+his own private keys. 
+
+===Address Generation Procedure===
+When generating an address, each party can independently generate the N needed
+public keys. They do this by deriving the public key in each of the different
+trees, but using the same path. They can then generate the multisig script (by
+lexicographically sorting the public keys) and the corresponding p2sh address.
+In this way, each path corresponds to an address, but the public keys for that
+address come from different trees.
+
+====Receive address case====
+Each cosigner generates addresses only on his own branch. One of the n
+cosigners wants to receive a payment, and the others are offline. He
+knows the last used index in his own branch, because only he generates
+addresses there. Thus, he can generate the public keys for all of the
+others using the next index, and calculate the needed script for the address.
+
+Example: Cosigner #2 wants to receive a payment to the shared wallet. His last
+used index on his own branch is 4. Then, the path for the next receive
+address is `m/$purpose/2/1/5`. He uses this same path in all of the cosigners
+trees to generate a public key for each one, and from that he gets the new
+p2sh address.
+====Change address case====
+Again, each cosigner generates addresses only on his own branch. One of the
+n cosigners wants to create an outgoing payment, for which he'll need a change
+address. He generates a new address using the same procedure as above, but
+using a separate index to track the used change addresses. 
+
+Example: Cosigner #5 wants to send a payment from the shared wallet, for which
+he'll need a change address. His last used change index on his own branch is
+11. Then, the path for the next change address is `m/$purpose/5/0/12`. He uses
+this same path in all of the cosigners trees to generate a public key for each
+one, and from that he gets the new p2sh address.
+
+
+===Transaction creation and signing===
+When creating a transaction, first one of the parties creates a Transaction
+Proposal. This is a transaction that spends some output stored in any of the
+p2sh multisig addresses (corresponding to any of the copayers' branches).
+This proposal is sent to the other parties, who decide if they want to sign.
+If they approve the proposal, they can generate their needed private key for
+that specific address (using the same path that generated the public key in
+that address, but deriving the private key instead), and sign it. Once the
+proposal reaches m signatures, any cosigner can broadcast it to the network,
+becoming final. The specifics of how this proposal is structured, and the
+protocol to accept or reject it, belong to another BIP, in my opinion. 
+
+===Address discovery===
+
+When the master seed is imported from an external source the software should
+start to discover the accounts in the following manner:
+
+# derive the first account's node (index = 0)
+# derive the external chain node of this account
+# scan addresses of the external chain; respect the gap limit described below
+# if no transactions are found on the external chain stop discovery
+# if there are some transactions, increase the account index and go to step 1
+
+This algorithm is correct, because software should disallow creation of new
+accounts if previous one has no transaction history as described in chapter
+"Account" above.
+
+Please note that the algorithm works with the transaction history, not account
+balances, so you can have account with total 0 coins and the algorithm will
+still continue with discovery.
+
+===Address gap limit===
+
+Address gap limit is currently set to 20. If the software hits 20 unused
+addresses in a row, it expects there are no used addresses beyond this point
+and stops searching the address chain.
+
+Wallet software should warn when user is trying to exceed the gap limit on
+an external chain by generating a new address.
+
+
+===Rationale===
+
+This stucture provides a general way of doing HDPM wallets between m-of-n
+parties. Here are some explanations about the design decisions made.
+
+The reason for using separate branches for each cosigner is we don't want
+two of them generating the same address and receiving simultaneous payments
+to it. The ideal case is that each address receives at most one payment,
+requested by the corresponding cosigner. 
+
+==Examples==
+
+{|
+!cosigner_index
+!change
+!address_index
+!path
+|-
+|first
+|receive
+|first
+| m / 45' / 0 / 0 / 0
+|-
+|first
+|receive
+|second
+| m / 45' / 0 / 0 / 1
+|-
+|first
+|receive
+|fifth
+| m / 45' / 0 / 0 / 4
+|-
+|first
+|change
+|first
+| m / 45' / 0 / 1 / 0
+|-
+|first
+|change
+|second
+| m / 45' / 0 / 1 / 1
+|-
+|second
+|receive
+|first
+| m / 45' / 1 / 0 / 0
+|-
+|third
+|change
+|tenth
+| m / 45' / 2 / 1 / 9
+|}
+
+==Compatible walets==
+
+* [[https://copay.io|Copay wallet]] ([[https://github.com/bitpay/copay|source]])
+
+==Reference==
+
+* [[bip-0032.mediawiki|BIP32 - Hierarchical Deterministic Wallets]]
+* [[bip-0043.mediawiki|BIP43 - Purpose Field for Deterministic Wallets]]
+* [[https://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg05156.html|Original mailing list discussion]]