Tag team signing, multi-signer, multi-sig?!? Confused yet? Let's clear it up.
Tag team signing is an innovative feature enabling multiple signing devices to authorize transactions for the same Lightning node. It's a game-changer for both individual users and businesses.
Let's take a look at how this works for individuals and businesses.
Scenario: You often need to do LN transactions on the go, and are frequently receiving or routing payments. You want an always-on Lightning node to accept payments but restrict the ability to send payments unless explicitly authorized as you're not always at home.
Solution: Use tag team signing by having a home signer, always on for receiving payments. When you need to send payments, connect another signer that is always in your posession and is intermittently connected. This away-signer temporarily takes over from the home signer, completes the payment transaction(s), and then reverts signing authority back to the home signer for receiving payments.
Scenario: A business requires multiple personnel to authorize transactions for the same Lightning node.
Solution: Each member can have a signing device in their posession, which allows them to send payments from the same node. There would again likely be a "home" signer that is always on to receive payments. As above, no two signers can be simultaneously connected and authorizing transactions, hence the tag team.
Don't confuse tag team signing with multi-sig Lightning:
Tag team signing in VLS represents a significant leap in managing the security and operational flexibility of Bitcoin Lightning Network transactions.
It's about giving users and businesses the power to control their transaction signing in a way that best suits their needs, without compromising on security.