should i keep the private keys inside the wallet or outside ?

Question

should i really save the private key of users outside of the wallet?

I have setup 4 multichain  node on digital ocean server talking to each other. so my question is should i really be worried about of instances getting compromised. even if i save the private key of users on another server of digital ocean that can also be compromised. isn't it ? so what do you guys suggest ?

Answer 1

I'm afraid this isn't really a question that we can answer in black and white. MultiChain works well with either way of doing things, and you need to consider carefully your security requirements.

One possibility to consider is using 2-of-2 multisignature addresses, where the two private keys are on different servers. Then two servers would need to be compromised in order to create transactions on behalf of a user.

Tutorial on multisignatures here: https://www.multichain.com/developers/multisignature-transactions/