MuSig2
Also called: MuSig, MuSig 2, Schnorr multisig, key aggregation, aggregate signature, BIP327.
MuSig2 is a Schnorr multi-signature scheme (BIP 327): several signers share one aggregate key and produce one ordinary-looking signature.
MuSig2 lets several people control coins together while appearing on chain as a single key. The signers combine their public keys into one aggregate key, and to spend they cooperate on one Schnorr signature that is valid for it.
How it works
BIP 327, by Jonas Nick, Tim Ruffing and Elliott Jin, standardizes the scheme for BIP 340 keys and signatures:
- Key aggregation. The signers' keys are combined into one 32-byte aggregate key, with no interaction needed.
- Nonce round. Signers exchange public nonces. This can happen before the transaction is known.
- Partial signatures. Each signer sends a partial signature, and these combine into one 64-byte signature.
Signing takes two communication rounds; the earlier MuSig1 needed three. MuSig2 is n-of-n: every signer must take part. Threshold (t-of-n) setups need a different scheme or a Taproot script path.
Why it matters
A MuSig2 P2TR output looks the same as a single-signer one, and spending it takes one signature however many signers there are. That makes it cheaper and more private than script multisig with OP_CHECKSIGADD. The aggregate key can also be tweaked to add hidden Taproot script paths.
The catch is signing state. Nonces can't be generated deterministically, and BIP 327 warns that signing twice with the same secret nonce lets others extract the secret key, so implementations must handle sessions carefully.
Related BIPs
BIP 328 defines how to build an xpub from an aggregate key for deriving fresh addresses, BIP 373 adds MuSig2 fields to PSBTs, and BIP 390 proposes a musig() output descriptor expression. Compare it with single-signer Schnorr in BIP 340 vs BIP 327.