NEWSLETTER
The ethereum co -founder, Vitalik Buterin, has emphasized the urgent need for improved wallet safety solutions to reduce cryptography losses caused by inaccessible funds.
On February 28, Buterin shared his concerns in x, noting that a large amount of lost cryptography derives from users who are blocked from their wallets instead of robberies.
BUTERINE <a target="_blank" href="https://x.com/vitalikbuterin/status/1895358841568506053?s=46″>saying:
“There are also many people who have lost large amounts of cryptography for * loss * instead of theft. Software error, forgotten password, lost device, burned paper wallet in the FIRE, updated device without making a data backup … many ways for that to happen. “
He also highlighted a key challenge in which investors who lose access to their funds often have no one to take responsibility. He believes that many choose to remain silent for shame, which further complicates the problem.
Buterin's comment attracts more attention to a significant risk of Autocustody in the potential for loss of permanent assets.
Although self -ustody protects users of exchange failures and protocol tricks, it also puts them at risk of losing their holdings due to human errors or technical failures. Without safeguards, investors can permanently lose access to their assets.
Recent figures illustrate the problem scale. A January River report estimated that around 1.6 million bitcoin, more than $ 1.5 billion at that time, had become inaccessible due to the poor management of Autocustody. This amount exceeds 1.2 million btc estimated lost in change -related incidents.
Social recovery solution
Taking this into account, Bugerin urged the cryptographic industry to prioritize wallet security innovations that protect users from such irreversible losses.
According to him:
“The truly robust wallet safety solutions that our ecosystem needs to build also should take into account the loss. (This is a great part of why I talk so much about social recovery!) ”
Bugerin has <a target="_blank" href="https://x.com/VitalikButerin/status/1348394962103070720″>promoted Social recovery wallets since 2021. This method uses a multiple signature system, allowing the designated guardians to help users recover access to their funds.
Social recovery wallets function as regular wallets, with a single key signature transaction. However, if users lose access, they can request that their guardians authorize a transaction to update the signature key.
Buterin emphasized that this approach balances decentralization with greater security and reduces the risk of theft and permanent loss.
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