Merge bitcoin/bitcoin#22067: Test and document a basic M-of-N multisig using descriptor wallets and PSBTs

9de0d94508828f5fdfaf688ccda5a91d38b32c58 doc: add disclaimer highlighting shortcomings of the basic multisig example (Michael Dietz)
f9479e4626f6b5126ff8cdab3a7e718c609429ef test, doc: basic M-of-N multisig minor cleanup and clarifications (Michael Dietz)
e05cd0546a155afcd45c43ce730c4abecd40dfed doc: add another signing flow for multisig with descriptor wallets and PSBTs (Michael Dietz)
17dd6573008c8aca9fc0da9419225c85a4f94330 doc: M-of-N multisig using descriptor wallets and PSBTs, as well as a signing flow (Michael Dietz)
1f20501efce041d34e63ab9a11359bedf4a82cd5 test: add functional test for multisig flow with descriptor wallets and PSBTs (Michael Dietz)

Pull request description:

  Aims to resolve issue https://github.com/bitcoin/bitcoin/issues/21278. I try to follow the steps laanwj outlined there exactly, with the exception of using `combinepsbt` instead of `joinpsbts`. I wrote a functional test to make sure it works as expected before doing the docs, and figured it would also be a good source of documentation. So I kept the test as simple as possible and didn't go crazy with edge-cases and various checks. I do have a lot more test-cases I've written that I will follow up with (either in a separate PR or another commit - lmk if you have a preference), but I want to do it in a way that doesn't bloat this test so it remains useful as a quickstart (unless that's a bad idea)?

ACKs for top commit:
  S3RK:
    Code review ACK 9de0d94. Rspigler's argument convinced me that we should leave the workflow with two wallets. I assume using multisig with external signers is a popular use-case and it's important to keep compatibility.
  laanwj:
    Code and documentation review ACK 9de0d94508828f5fdfaf688ccda5a91d38b32c58

Tree-SHA512: 6c76e787c21f09d8be5eaa11f3ca3eaa4868497824050562bdfb2095c73b90f5e8987a8775119891d6bfde586e3f31ad1b13e4b67b0802e1d23ef050227a1211

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diff --git a/doc/descriptors.md b/doc/descriptors.md
index 3bbb626a42..57a0f99d70 100644
--- a/doc/descriptors.md
+++ b/doc/descriptors.md
@@ -139,6 +139,47 @@ Key order does not matter for `sortedmulti()`. `sortedmulti()` behaves in the sa
 as `multi()` does but the keys are reordered in the resulting script such that they
 are lexicographically ordered as described in BIP67.
 
+#### Basic multisig example
+
+For a good example of a basic M-of-N multisig between multiple participants using descriptor
+wallets and PSBTs, as well as a signing flow, see [this functional test](/test/functional/wallet_multisig_descriptor_psbt.py).
+
+Disclaimers: It is important to note that this example serves as a quick-start and is kept basic for readability. A downside of the approach
+outlined here is that each participant must maintain (and backup) two separate wallets: a signer and the corresponding multisig.
+It should also be noted that privacy best-practices are not "by default" here - participants should take care to only use the signer to sign
+transactions related to the multisig. Lastly, it is not recommended to use anything other than a Bitcoin Core descriptor wallet to serve as your
+signer(s). Other wallets, whether hardware or software, likely impose additional checks and safeguards to prevent users from signing transactions that
+could lead to loss of funds, or are deemed security hazards. Conforming to various 3rd-party checks and verifications is not in the scope of this example.
+
+The basic steps are:
+
+  1. Every participant generates an xpub. The most straightforward way is to create a new descriptor wallet which we will refer to as
+     the participant's signer wallet. Avoid reusing this wallet for any purpose other than signing transactions from the
+     corresponding multisig we are about to create. Hint: extract the wallet's xpubs using `listdescriptors` and pick the one from the
+     `pkh` descriptor since it's least likely to be accidentally reused (legacy addresses)
+  2. Create a watch-only descriptor wallet (blank, private keys disabled). Now the multisig is created by importing the two descriptors:
+     `wsh(sortedmulti(<M>,XPUB1/0/*,XPUB2/0/*,…,XPUBN/0/*))` and `wsh(sortedmulti(<M>,XPUB1/1/*,XPUB2/1/*,…,XPUBN/1/*))`
+     (one descriptor w/ `0` for receiving addresses and another w/ `1` for change). Every participant does this
+  3. A receiving address is generated for the multisig. As a check to ensure step 2 was done correctly, every participant
+     should verify they get the same addresses
+  4. Funds are sent to the resulting address
+  5. A sending transaction from the multisig is created using `walletcreatefundedpsbt` (anyone can initiate this). It is simple to do
+     this in the GUI by going to the `Send` tab in the multisig wallet and creating an unsigned transaction (PSBT)
+  6. At least `M` participants check the PSBT with their multisig using `decodepsbt` to verify the transaction is OK before signing it.
+  7. (If OK) the participant signs the PSBT with their signer wallet using `walletprocesspsbt`. It is simple to do this in the GUI by
+     loading the PSBT from file and signing it
+  8. The signed PSBTs are collected with `combinepsbt`, finalized w/ `finalizepsbt`, and then the resulting transaction is broadcasted
+     to the network. Note that any wallet (eg one of the signers or multisig) is capable of doing this.
+  9. Checks that balances are correct after the transaction has been included in a block
+
+You may prefer a daisy chained signing flow where each participant signs the PSBT one after another until
+the PSBT has been signed `M` times and is "complete." For the most part, the steps above remain the same, except (6, 7)
+change slightly from signing the original PSBT in parallel to signing it in series. `combinepsbt` is not necessary with
+this signing flow and the last (`m`th) signer can just broadcast the PSBT after signing. Note that a parallel signing flow may be
+preferable in cases where there are more signers. This signing flow is also included in the test / Python example.
+[The test](/test/functional/wallet_multisig_descriptor_psbt.py) is meant to be documentation as much as it is a functional test, so
+it is kept as simple and readable as possible.
+
 ### BIP32 derived keys and chains
 
 Most modern wallet software and hardware uses keys that are derived using
diff --git a/doc/psbt.md b/doc/psbt.md
index c411b31d5d..0f31cb8eba 100644
--- a/doc/psbt.md
+++ b/doc/psbt.md
@@ -92,6 +92,9 @@ hardware implementations will typically implement multiple roles simultaneously.
 
 #### Multisig with multiple Bitcoin Core instances
 
+For a quick start see [Basic M-of-N multisig example using descriptor wallets and PSBTs](./descriptors.md#basic-multisig-example).
+If you are using legacy wallets feel free to continue with the example provided here.
+
 Alice, Bob, and Carol want to create a 2-of-3 multisig address. They're all using
 Bitcoin Core. We assume their wallets only contain the multisig funds. In case
 they also have a personal wallet, this can be accomplished through the