- Vitalik Buterin proposes “multisig” to solve the problem of hardware wallet seed phrases.
- Shamir is another alternative for storing seed phrases, but Buterin downplayed it.
Alternative HD
Vitalik Buterin favors multisig over Shamir for hardware wallet security
Vitalik Buterin supports multisig to improve wallet security
Self-custody wallets, especially hardware wallets, are becoming more popular as third-party risks come to light, such as the FTX implosion.
Crypto Twitter clearly reminds users of these risks through catchy phrases.
“It's not your key or your code.”
However, users can be the biggest risk factor for hardware wallets. They can easily forget the seeds they hid, or worse, have them stolen.
Ethereum founder Buterin hints at 'multisig' to solve wallet risks
but Ethereum [ETH] Vitalik Buterin proposed a solution to this hardware wallet problem, saying:
“These are the reasons why I use multisig (secure) for over 90% of my personal funds. M-of-N, some keys are held by you (but not enough to prevent recovery), others are held by others you trust. Don't reveal who the other person is, even to each other. Decentralize your own security. ”
“Multisig” refers to having multiple signers on a wallet to reduce single points of failure.
Alternatively, you can use Shamir backup. This typically splits the recovery seed phrase into multiple parts (shared) between devices.
However, Buterin downplayed Shamir's effectiveness, claiming:
“It's much easier to fail than multisig.”
Focusing all his efforts on “multisig”, Mr. Vitalik emphasized:
“It depends on who holds the Shamir shares!'' I'm sure you're wondering. (i) “Trust other devices” vs. “Trust friends” (ii) Shamir and Multisig; are orthogonal. ”
of market The amount of hardware wallets is expected to increase from $350 million in 2024 to $1.56 billion by 2029.
Growth may come with the challenges mentioned above, but based on the user's risk profile, Shamir or “multisig” may be a possible solution.
