Multisig wallets are contract-based wallets between multiple parties to make collaborative spending decisions. These wallets are suited for organizations, teams, escrows, crypto exchanges, or individuals for enhanced security. This paper introduces a library, LibMultiSig, designed to create diverse multisignature Bitcoin transactions. This paper presents an in-depth analysis of multisig protocols, examining transaction size, locking/unlocking mechanisms, witness data, user privacy, and inter-party interactions. The library also implements Pay-to-Taproot (P2TR) multisignature transactions, showcasing key aggregation techniques like musig and musig2 to create blockchain-indistinguishable multi-party transactions. LibMultiSig is one of the first libraries to offer a selection of variants of the script and key paths for the creation of multisignature protocol, along with comprehensive comparisons. It serves as a valuable tool for considering multisignature transactions’ impact on blockchain scalability and user privacy.