Guides / Glossary / Descriptor
Glossary

Output descriptor: the backup a multisig wallet needs

A short text record of exactly which keys and script a wallet uses. For multisig, it is as important to back up as the keys.

Education only

Definition. A short text record of exactly which keys and script a wallet uses. For a multisig wallet, a descriptor backup is what lets you rebuild the wallet in other software.

How it works

An output descriptor, defined in BIP 380 and related proposals, is a line of text that describes how a wallet makes its addresses. For a 2 of 3 multisig it names the script type, the threshold and the three extended public keys, along with the derivation paths and fingerprints that show which device each key came from. It ends with a checksum so typing errors can be detected.

A descriptor contains only public information about the keys. It cannot be used to spend. It can, however, reveal the wallet's full address history and balance to whoever holds it, so it deserves privacy even though it is not a secret in the same way as a recovery phrase.

Why it matters for a company

For a single key wallet, the recovery phrase is usually enough to rebuild everything. Multisig is different. To spend from a 2 of 3 wallet, the software must know all three public keys and the exact script, even though only two private keys sign. If the company has two recovery phrases but no record of the third public key, rebuilding the wallet can become slow, uncertain or impossible.

That is why the descriptor sits at the centre of a company's backup plan. A common approach is to store a copy with each key, on paper or steel, so that whichever keys survive, the descriptor survives with them. It also allows a watch-only copy of the wallet, so the finance team or auditor can see balances without being able to sign.

Example only, fictional. A company's key register lists three keys and notes that a printed descriptor is sealed with each one. At the yearly recovery drill, the team imports the descriptor into a second, independent wallet application and confirms it shows the same first receiving address as the main wallet.

Common mistakes

Sources

Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.

  1. Bitcoin BIPsBIP 380: Output script descriptors, general operation (wallet backups and exports)
  2. Bitcoin BIPsBIP 32: Hierarchical deterministic wallets (extended keys)
  3. Bitcoin BIPsBIP 11: M of N standard transactions (multisig)
Education, not advice.

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