Vitalik Buterin, the co-founder of Ethereum, recently took to Reddit to share his thoughts on self-custody, social recovery, and multisig wallets. Buterin is known for his strong views on decentralized systems and blockchain technology, and his Reddit post is a valuable resource for anyone looking to store their cryptocurrency in a safe and secure manner.
In his post, Buterin outlined his views on social recovery and multisig wallets, which he believes are a great way to store funds securely while still retaining control over them. He explained that multisig wallets are particularly effective because they give users most of the key benefits of self-custody, without the risks of having to be responsible for their entire security setup. Buterin also noted that social recovery wallets are much easier to use than multisig wallets and will become even more user-friendly with upcoming wallets like Soul Wallet.
Self-custody is important. And social recovery and multisig is a great way to do it.
A quick reddit post on how I think about choosing guardians for social recovery and multisig wallets:https://t.co/FY1iyJ6BFC
— vitalik.eth (@VitalikButerin) March 17, 2023
However, Buterin stressed that the key to using social recovery and multisig wallets securely lies in choosing the right guardians. Guardians are the people who hold the keys that allow access to your funds, and they play a crucial role in ensuring the security of your cryptocurrency. Buterin suggested that guardians should be chosen based on their ability to minimize the chance of losing their keys or colluding to steal funds.
Buterin’s rule of thumb is that enough guardians should be controlled by other people to ensure that there are enough guardians left to recover your funds if you disappear. He also advised that guardians should not know each other, as this greatly reduces the risk of collusion, and each guardian should be on a separate device to avoid commonalities that could compromise too many of your guardians at the same time.
Furthermore, Buterin recommended that guardians should ask a security question before approving any operation to prevent unauthorized access. This security question should be something that only the guardian and the user know, and the guardian should only approve the operation if the user gives the correct answer.
Finally, Buterin advised that if you are doing “degen” stuff (i.e., high-risk activities), you should make sure that you have guardians who can respond quickly. Otherwise, this does not matter.
In conclusion, Vitalik Buterin’s Reddit post is a valuable resource for anyone looking to store their cryptocurrency securely using social recovery and multisig wallets. By following his advice and carefully choosing guardians, users can ensure the safety and security of their cryptocurrency, while still retaining control over their funds.
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