Ethereum Founder Vitalik Buterin Called for “Decentralized Security” – Why?
Journalist
- Vitalik Buterin proposes a “multi-signature” solution to the seed phrase problem in hardware wallets.
- Buterin downplayed Shamir as an alternative to storing seed phrase.
As third-party risks, such as the collapse of FTX, became apparent, self-custody wallets have become more popular.
Crypto Twitter reminds its users of the risks with a catchy phrase.
Not your keys and not your cryptocurrency.
Hardware wallets are not without risk, but the biggest risk is the user. Users can easily forget the stored seed or, worse, it could be stolen.
Ethereum’s Buterin proposes “multi-signature” as a solution to wallet risks
You can also read about it here Ethereum [ETH] Vitalik Buterin proposed a solution to this hardware wallet problem, noting,
“I use a multisig vault for>90% of my personal funds. You have some keys (but not enough for recovery) and the rest are held by people you trust. Do not reveal the identities of these people, even to each other. “Decentralize your security.”
Multisig refers to using multiple signers to reduce the risk of a single mistake.
Shamir Backup is another option. It splits the recovery seed phrase (shares across devices) into multiple parts.
Buterin argued that Shamir is not as effective as he claimed.
“Much easier to screw up than a multisig.”
Vitalik has stressed the importance of “multisig” and backed this with all his weight.
It depends on who stores the Shamir shares! The questions are: Do you trust your friends or “Do you trust your other devices”? (iii) Shamir vs. Multisig “Are orthogonal.”
You can also learn more about: Markets are a great way to reach the right people. Hardware wallets are expected to grow from $0.5 billion in 2024 to $1.56 billion in 2029.
The growth is expected to be accompanied by the challenges listed above, but Shamir and “multi-signature” are possible solutions depending on the user’s risk profile.
rnrn
