Ethereum co-founder Vitalik Buterin recently shared his thoughts on self-custody, social recovery wallets, and multi-signature wallets on Reddit. Buterin is known for his strong views on decentralized systems and blockchain technology, and his Reddit posts are an invaluable resource for anyone looking to safely store their cryptocurrencies.
#VitalikButerin Advocates for self-custody in latest Reddit post @azcoinnews https://t.co/3aKp9SteLg
— Kyptos (@azcoinnews) March 17, 2023
In the post, Buterin outlined his thoughts on social resilience and multi-signature wallets, which he believes are a great way to safely store funds while maintaining self-control over them. Multi-signature wallets are particularly effective, he explained, because they offer users most of the major benefits of self-management without the risk of being responsible for an entire security setup. Buterin also noted that social recoverable social wallets are easier to use than multisig wallets and will become more user-friendly with upcoming wallets like Soul Wallet.
However, Buterin emphasized that the key to using recoverable social wallets and multi-signature wallets safely is choosing the right guardians. Guardians are the key holders that allow access to your funds, and they play an important role in keeping your cryptocurrency safe. Buterin recommends choosing guards based on their ability to minimize the chance of losing keys or colluding to steal funds.
Buterin’s rule of thumb is that someone else has to control enough guards to ensure there are enough guards to recover the money if you disappear. He also recommends that guardians do not know each other, as this greatly reduces the risk of collusion, and that each guardian should use a separate device to avoid commonality that could affect too many people. While protecting your safety.
Additionally, Buterin advises guardians to ask security questions before approving any activity to prevent unauthorized access. This security question should be a question known only to the user and guardian, and the guardian can only approve the action if the user gives the correct answer.
Finally, Buterin suggested that if users are doing “degen” work (that is, high-risk activity), they should make sure they have defenders who can respond quickly.
In short, Vitalik Buterin’s Reddit thread is an invaluable resource for anyone looking to securely store their cryptocurrencies using recoverable social wallets and multisig wallets. By following his advice and choosing guardians carefully, users can keep their cryptocurrencies safe while retaining control over their funds.
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board take
according to Kyptos
