Buterin relies on software wallets that offer users the ability to set up multisig. This process requires several key factions to come together to complete transactions.
Vitalik Buterin is abandoning hardware wallets - the founder of Ethereum announced this on May 1 on the social network X. He considers the way the devices operate ineffective. Many people in the crypto community still consider such wallets to be safe and convenient.
Hardware wallets offer users the ability to manage cryptocurrencies offline. However, devices may establish a temporary connection to the World Wide Web. Thus, the devices optimally serve swing traders who rarely move their coins.
In a recent post on social network X, Vitalik Buterin said that, in his opinion, the disadvantages of the devices outweigh the advantages. Meanwhile, crypto enthusiast and developer Kofi encouraged users to purchase and use hardware wallets.
Buterin responded to this speech by replying that hardware wallets also have disadvantages. He noted, for example, that they can provide an additional backup copy of the passphrase.
This passphrase is used in wallets to gain access to one or more blockchain addresses. This way, anyone who owns them can also gain control of the cryptocurrencies they contain.
In addition, the key phrase can also be lost or forgotten - this fate especially often befalls users of hardware wallets. Over the past few years, many strange stories have surfaced.
“It is for these reasons that I use the multi-signature wallet from Safe,” Ethereum founder Buterin commented.
A multisig wallet uses multiple fractional keys rather than a single key. To start transactions, you must use multiple keys together.
Buterin keeps pieces of the keys to himself and distributes other pieces needed to access the coins among his friends to secure more than 90% of his billion-dollar crypto assets.
“Keep some keys for yourself and give the rest to other people you trust. Don’t reveal who these people are, even to each other,” the 30-year-old billionaire recommends.
This approach is generally more suitable for long-term coin holders, as otherwise the effort required for recurring transactions would be too high. In addition, Buterin holds up to 10% of his cryptocurrencies in other ways; he did not reveal exactly how. However, it is likely that Buterin stores these coins in an easily accessible software wallet that allows him to easily make spontaneous payments.
Finally, the programmer gave his supporters advice: “Decentralize your security.”#CryptoWatchMay2024
