In a post to the r/ethereum community on Reddit on March 16, Ethereum co-founder Vitalik Buterin shared his approach to wallet security and emphasized the importance of having a diverse set of gatekeepers to ensure maximum security of wallets. cryptographic assets held in self-custody through multisig. and social recovery portfolios. With an increasing number of cryptocurrency hacks and scams in recent years, and several major cryptocurrency companies set to fail in 2022, self-custody and maintaining sufficient wallet security procedures have become more critical than ever.
Multisig and social recovery wallets rely on gatekeepers, which are external sources that can recover funds or approve transactions. Buterin noted that while the structures of these wallets differ, the gatekeepers they trust must be decentralized, meaning they must be controlled by others to minimize concentration of power and the risk of hacking, coercion, incapacitation, or death. Buterin advised that enough keepers should be controlled by other people, so if the wallet owner goes missing, there are still enough keepers left to get their funds back.
Furthermore, Buterin suggested that someone’s group of guardians should not know each other, as this reduces the risk of collusion to attack their wallets and assets. However, they should still be able to find each other in case something happens to the owner of the wallet. Buterin also recommended that guardians ask a security question that only they and the owner know when confirming a trade, which should only be confirmed when the correct answer is given.
Buterin emphasized the need to use wards that can respond quickly to meet your fast-moving needs for degen traders or those who don’t hodl games long term. In such cases, guardians should be able to act quickly at short notice to withdraw money if a contract becomes vulnerable, move money if it is close to liquidation, etc.
Finally, Buterin recommended evaluating each tutor at least once a year, as this will confirm that they have not forgotten or misplaced their accounts. With the increasing rate of cryptocurrency hacks and scams in recent years, maintaining sufficient wallet security procedures has become more important than ever, and following Buterin’s advice on choosing gatekeepers for multisig and social recovery wallets it can help maximize the security of one’s own stored crypto assets. custody.