- Diverse guardians for crypto security
- Multisig and social recovery wallets
- Decentralizing wallet guardians
Ethereum co-founder Vitalik Buterin has recently underlined the necessity for a diverse range of “guardians” to ensure optimal security for crypto assets in self-custody through multisig and social recovery wallets. With the ongoing surge in crypto-related scams and hacks, as well as the collapse of several major crypto companies in 2022, prioritizing self-custody and implementing robust wallet safety measures are increasingly crucial.
In a Reddit post dated March 16, Buterin shared his thoughts on selecting guardians for multisig and social recovery wallets within the r/ethereum community. He elaborated on his approach to wallet security and underscored the need for decentralizing wallet guardians. While multisig wallets and social recovery wallets have different structures, both types rely on guardians, who act as external sources for fund recovery and transaction approval.
Guardians generally consist of sets of external wallets owned by the same person or addresses controlled by other individuals or entities. Buterin highlighted the importance of avoiding the concentration of power in one’s own hands when choosing guardians. Having control over multiple guardians poses a delicate balance – it reduces reliance on others but also increases the risk of being hacked, coerced, or becoming incapacitated.
In light of these considerations, Buterin advises crypto asset holders to decentralize wallet guardians to achieve maximum security. This approach ensures that no single party holds excessive control, minimizing potential risks while maintaining the integrity of the self-custody process.
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