Multibit
2.5 stars - "Multibit" Multibit
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Multibit

Written on: May 25th, 2015 | Author: David M
Important info
  • Wallet Type:  Desktop
  • Verification:  SPV
  • Security:  Cold Storage
  • Founded :  Jim Burton
  • Open source:  Yes
  • Privacy :  HD
  • Crypto supported:  bitcoin
  • Vulnerability to malware:  Vulnerable
  • Private key stored:  client side
Pros and cons
  • Two million downloads to date!
  • HD wallet offers good privacy
  • Extremely lean product
  • Not pleasing to the eye
  • Desktop not the most secure environment

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Summary

Multibit is a lightweight, downloadable HD wallet. Unlike Bitcoin Armory which requires the downloading of the entire blockchain, multibit is a thin wallet, meaning only a small subset of the blockchain must be downloaded to keep track of current transactions relevant to the user.

Designed primarily to provide a simple wallet solution, multibit does not offer a cold storage solution itself like other downloadable clients, but is compatible with top cold storage hardware solution Trezor.

Multibit is an extremely popular wallet with more than 2 million downloads to date. It is probably the best of the old school wallet solutions, and has done much to keep up with the market, evidenced by its use of HD technology. Multibit has fallen behind a bit from a security perspective, surpassed by more robust cold-storage or multisig solutions. Frustratingly, it also has not released a mobile product. However, with its user-friendly design and compatibility with hardware cold-storage solutions like Trezor, Multibit will maintain relevance in the bitcoin market.

The multibit wallet

Multibit is an HD wallet, meaning that the master public key and private key are generated in a genesis "seed". All subsequent addresses created maintain a mathematical link to the seed. For user convenience, the seed is represented as a 12, 18 or 24 word passphrase. Provided the user remembers the passphrase, which must be securely stored offline, the entire multibit wallet with all addresses created within can be restored on any other compatible HD wallet. This system ensures wallet safety in the event that a computer is stolen or breaks, or if there is some sort of multibit meltdown.

wallet

The passphrase is only utilized for seed recovery, a simple password is all that is required to enter the client. The password and private key are kept client-side, unreadable to multibit.

Once logged into the client, users can organize different addresses into custom-named folders and files, much like is done when using windows. This is extremely convenient for bookkeeping and auditing, and is a great benefit of HD wallets. Transactions are extremely simple to execute - simply input the receiving address, and sign the transaction by entering your password. Messages can be placed on the transaction for auditing purposes.

Mobile

There is no online version of Multibit; the product is downloadable only, and does not have a mobile solution.

Bottom line

The Multibit product would benefit greatly from releasing an on-the-go mobile solution for day to day bitcoin requirements, as its lack of cold storage or multiple signature functionality means users might look elsewhere to store bitcoin savings. However, its user interface, which is among the best in the industry, combined with its compatibility with hardware cold storage solutions like trezor, means multibit should remain among the top players in the bitcoin wallet market.

Bitcoin Price (USD): 853.48